Ocado to build third warehouse in Japan in 2027
- Ocado Group and Aeon entered into a partnership in November 2019
- Online supermarket giant’s third Japanese ‘CFC’ to open in Miyashiro
Ocado Group plans to build its third robotic warehouse in Japan as part of its partnership with Aeon.
The FTSE 250 company entered into a partnership in November 2019 to develop the Japanese retail giant’s online grocery business using the Ocado Smart Platform.
In 2023, Ocado opened a customer fulfilment centre in Chiba to serve customers across the Kanto region.
Partnership: Ocado Group entered into a partnership in November 2019 to develop Japanese retail giant Aeon’s online grocery business using the Ocado Smart Platform
The company plans to open another CFC in the city of Hachioji in 2026 and aims to open a third CFC in Miyashiro, Saitama Prefecture the following year, with more to follow.
Ocado also announced it would increase labour productivity by expanding its physical processes with new technologies, such as its grid-connected robotic picker.
Ocado, based in Hatfield, Hertfordshire, sells automated technology to businesses but is best known for its joint venture with Marks & Spencer, where it runs a grocery website.
Tim Steiner, Co-Founder and CEO of Ocado, said: “Today marks an exciting moment for the relationship between Aeon and Ocado as we further deepen our already strong partnership.”
‘As evidenced by the state-of-the-art CFC live at Honda, Ocado is helping Aeon Next provide a seamless online grocery shopping experience for customers across Tokyo.
“We can’t wait to offer this service to even more customers in the years to come.”
The announcement was a major boost for the company, which suffered a major blow in June when Canadian supermarket chain Sobeys announced it would delay the opening of its fourth Ocado robotic warehouse in Vancouver.
Ocado said it would instead focus on increasing orders and sales through its existing warehouses.
It was further reported that the mutual exclusivity agreement with Sobeys, Canada’s second-largest supermarket chain, has ended after six years.
Ocado Group Shares fell to their lowest level in six years.
Although they have recovered somewhat and were up 5.5 per cent at 346.2p on Monday afternoon, their value has still more than halved this year.
While sales are growing at Ocado, they have slowed significantly since the end of Covid-related restrictions prompted many consumers to return to physical stores to buy groceries.
In addition, the company is struggling to make a profit. For the 12 months to December 2023, it made a loss of £394m, compared to a loss of £581m the year before.
Making online grocery sales profitable has traditionally been a major challenge due to the high infrastructure costs required to set up a large operation and the “last mile” problem – the huge costs of transporting products from warehouses to homes.
At the same time, Ocado is embroiled in a dispute with M&S over the final payment relating to their joint venture.
DIY INVESTMENT PLATFORMS
AJ-Bel
AJ-Bel
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free Fund Trading and Investment Ideas
interactive investor
interactive investor
Fixed investment costs from £4.99 per month
eToro
eToro
Stock Investing: 30+ Million Community
Trading 212
Trading 212
Free stock trading and no account fees
Affiliate links: If you purchase a product, This is Money may earn a commission. These deals are chosen by our editorial team because we think they are worth highlighting. This does not affect our editorial independence.
Compare the best investment account for you