Coles is reportedly exploring in-store robotics to pick and pack online grocery orders, as the supermarket looks to cut costs and speed up delivery times.
According to the Australian Financial Review, Coles is in early discussions with UK-based Ocado about a potential technology trial that could help the retailer fulfil express orders without investing in another large automated warehouse.
The two companies entered a long-term strategic partnership in March 2019 to transform the retailer’s online grocery operations using the Ocado Smart Platform.
Their first Customer Fulfilment Centre (CFC) opened in Victoria in 2024, bringing Ocado’s automated warehouse technology to Coles’ online grocery network.
Founded in 2000, Ocado began as an online-only supermarket before shifting its focus towards supplying automation technology and software to traditional grocery retailers. Its customers include Kroger in the US, Sobeys in Canada and Coles in Australia.
Once described by founder Tim Steiner as the “Tesla of grocery”, Ocado is also seeking to make its warehouse technology more commercially attractive by loosening restrictions in existing contracts, potentially opening the door to a broader customer base.
Earlier this year, the company considered up to 1000 job cuts, according to the British newspaper The Times, as it seeks to reduce costs and expand its technology business.
