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(Alliance News) - Ocado Group PLC said Friday it has signed an agreement with Aeon to develop the Japanese grocer's online business using the Ocado Smart Platform.
Aeon has about 100 million customers and operates over 21,000 stores across various businesses, with operations in 14 countries. Aeon will be launching its new online business with the help of Ocado's platform.
The agreement plans for the development of a national fulfilment network to serve the whole of the Japanese market, with expected sales capacity of around JPY600 billion by 2030, growing to approximately JPY1 trillion by 2035, the company said.
Initial fulfilment centres will serve the Kanto region in Japan, with the first planned centre to go live in 2023. By 2025, Aeon expects to have a sales capacity in this region in excess of JPY200 billion.
Ocado will provide Aeon with its end-to-end software platform as well as engineering and support services to ensure a "smooth launch" and ongoing development of its e-commerce operations, the company said.
Aeon will pay Ocado upfront fees upon signing and during the development phase, then ongoing fees linked to both sales achieved and installed capacity within each customer fulfilment centres and service criteria, the company noted.
Chief Executive Officer Tim Steiner said: "This partnership marks a major milestone for the food retail landscape in Japan, and I am excited that Ocado will play a key role in bringing ever greater levels of convenience and choice to Aeon's customers."
Ocado shares were up 12% in London at 1,347.00 pence each in early trading Friday.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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