Coles $150m deal to overhaul online grocery shopping

Company News

by Anna Napoli

Coles (ASX:COL) has today announced its entered into an exclusive partnership with online grocery platform Ocado to overhaul online grocery shopping for its customers.

The deal is expected to cost Coles about $130m to $150m over the development and construction period.

The new platform will approximately double Coles’ current Australia-wide home delivery capacity and is expected to lead to an improved profit margin for Coles Online.

Under the agreement, Ocado and Coles in Australia will launch an end-to-end online grocery shopping solution, encompassing a significantly enhanced customer experience and  two state-of-the-art automated customer fulfillment centres.

Coles CEO Steven Cain says Ocado is singularly focused on online grocery shopping, and as a result, has become the leading solution provider in the world. He says the company is delighted to be partnering with them to make life easier for Coles’ customers here in Australia.

Shares in Coles (ASX:COL) are trading 2.74 per cent higher to $12.02.

Anna Napoli

Finance News Network
Anna joined FNN February 2018 and also works with Channel 7 as a freelance producer. Anna has also worked as a lawyer and lecturer. She has also presented news updates for interstate news with Southern Cross Austereo.