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STELLARTON, Nova Scotia — Sobeys Inc. announced that it has agreed to use the e-commerce platform of Ocado Group PLC as it expands its online business.
Ocado, a pioneering online grocer based in the United Kingdom and the world’s largest online retailer dedicated to groceries, will help Canada’s second-largest food retailer build a website and mobile service and design an automated fulfillment center in the Toronto area using Ocado’s grid and robot network, Sobeys said on Monday. Ocado’s technology will also be used to manage Sobeys’ delivery system and customer service.
“Sobeys intends to play to win in Canadian online grocery shopping. We are very excited to bring this best-in-the-world grocery e-commerce experience to Canadian customers,” said Michael Medline, president and chief executive officer of Sobeys. “This unique and innovative Sobeys and Ocado experience will offer consumers the biggest selection, freshest products and most reliable delivery available anywhere on the planet. Our end-to-end e-commerce solution will allow Sobeys to build an online offer in a manner that is profitable and creates exceptional value for our customers, investors and supplier partners.”
Sobeys has more than 1,500 stores in all 10 Canadian provinces. Stores operate under banners that include Sobeys, Safeway, IGA, Foodland, FreshCo, Thrifty Foods and Lawton’s Drug Stores.
Ocado in recent years developed its Ocado Smart Platform as an end-to-end solution for customers looking to establish an online grocery capability. CEO Timothy Steiner said that the company expects increased demand for the platform as food retailers seek partnerships in response to Amazon.com’s acquisition of Whole Foods Market last June.
“We are delighted to be working with one of the leaders in North American grocery retailing. Sobeys is a highly successful and much admired Canadian business, and we are proud that they have chosen Ocado Solutions to partner with to build their online grocery business,” Steiner said in a statement.
