Ocado has been chosen by Australian supermarket chain Coles to build two customer fulfilment centres (CFCs) in Sydney and Melbourne. In addition the supermarket is to use the Ocado store pick software for its home delivery services in less populated areas.

Coles is a large grocery chain with 818 supermarkets, 911 alcohol stores, and 712 Coles Express petrol stations across the country. Sales last year were A$39.4bn (£22bn), of which A$1bn was online.

Ocado’s robotic CFCs are set to be in operation by 2023 and will have more than 1000 robots. This is to cost Coles between AUD 130-150 million for the development and construction of the units.

Chief executive Steven Cain said: “Ocado is singularly focused on online grocery shopping and, as a result, has become the best in the world. We are delighted to be partnering with them to make life easier for Coles’ customers here in Australia. Ocado’s on-going investment and retail partnerships around the world will help us continue to improve our offer into the future”.

Ocado’s partners now include Morrisons, Marks & Spencer, Kroger, Group Casino, Sobeys and ICA, as well as Coles.

Ocado chief Tim Steiner said: “Today marks another big moment in the continuing transformation of Ocado. Our unique, proprietary and industry-leading technology is bringing new growth opportunities to retailers around the world and changing the customer experience of grocery shopping. Coles is a grocer with a global reputation for innovation and outstanding commitment to their customers, and I am delighted we will be working together in the years to come to reshape the food retail landscape in Australia.”