Ocado supports Canada’s Sobeys

Online supermarket and online grocery consultants Ocado have agreed to work with the Canadian food retailer Sobeys.

Under the deal, Ocado will help Sobeys build a warehouse for its e-commerce operations outside of Toronto. The new site will be used for e-commerce product picking, using Ocado’s logistics technology to take and deliver online orders for customers in the greater Toronto area.

Ocado did a similar deal with the French company Groupe Casino in November and appears to be using its technology and logistics know-how to help other companies break into grocery deliveries around the world. Its online grocery sales are not as profitable as forecast when it formed more than ten years ago so this new direction may give heart to investors – when of course these deals start showing on the bottom line in forthcoming trading statements…

Sobeys chief executive Michael Medline was quoted as saying: “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.”