Ocado continues foray into Japanese market with expanded Aeon partnership
In May, Ocado held its position as the fastest growing grocer for the third month in a row, as efforts to cut prices continued to pay off.
Ocado is planning to build a new customer fulfilment centre in Japan as part of a continued partnership with Japanese retail company Aeon.
London-listed tech company Ocado partnered with Aeon in 2019 to develop the online operations of the business’ food delivery subsidiary, Aeon Next. Shares in Ocado rose 5.7 per cent when the market opened on Monday.
The new facility, set to open in Kuki-Miyashiro in 2027, will add to Aeon Next’s existing fulfilment centre in the Kanto region of Japan, which opened last year, and another set to open next year in Hachioji.
Chief executive of Ocado Group, Tim Steiner, said in the announcement on Monday morning: “Today is an exciting moment for AEON and Ocado’s relationship as we deepen our already strong partnership.
“As demonstrated by the state-of-the-art CFC live in Honda, Ocado is helping AEON NEXT to provide a seamless online grocery experience to customers across Tokyo. We can’t wait to bring this service to even more customers in the years to come,” he added.
Ocado shares are down 56 per cent year to date, continuing a steady decline since the end of the Covid-19 pandemic when shoppers were able to return to physical stores.
But in May, the company held its position as the fastest growing grocer for the third month in a row, as efforts to cut prices continued to pay off.
In London, Ocado accounts for three per cent of the grocery market, compared to 1.8 per cent in the whole of the UK.
Peel Hunt analysts said the news “provides welcome reassurance for Ocado”, especially as international competitors such as Kroger and Sobeys have recently paused expansions of their own customer fulfilment centres.
