Online grocer Ocado has announced that its two fulfilment centres in Australia commenced operations in July after a year of delays.
The centres, which will serve communities in Melbourne and Sydney via Ocado’s Smart Platform, were opened in partnership with Australian online grocer Coles.
The partnership was signed in 2019 and has been subject to delays due to construction problems.
The grocer expects next-day home delivery orders from Coles stores in metropolitan areas to be transitioned to the highly automated fulfilment centres by the end of December, “with further growth thereafter.”
Tim Steiner, CEO of Ocado, said: “The start of operations in our two Australian [fulfilment centres] is an exciting moment for teams at Ocado. Australia is one of the fastest developing markets in the world for grocery ecommerce, and Coles is already a market leader in the online channel.”
“As these CFCs ramp up, we are excited to help Coles bring a step-change in customer experience online to households across Sydney and Melbourne.”
Earlier this week, Coles announced a surge in revenue from its grocery business and expanded supermarket profit margins to the highest level recorded in the pandemic era.
Following the commencement of operations at the two centres in Melbourne and Sydney and the launch of Alcampo’s Madrid centre in July, Ocado now operates 25 live facilities in markets worldwide.
The group has previously struggled with sceptical analysts, low post-pandemic demand for online shopping, and legal disputes, but it has said it has a “clear roadmap” for a profit in 2026.
The online grocer fell out of the FTSE 100 at the end of May. At its pandemic peak, its market cap was £22bn, but it is now worth around £3bn.