Ocado to build third factory in Japan with online grocer AEON

Online grocery group Ocado is planning to build a third customer fulfilment centre (CFC) in Japan as part of its ongoing partnership with Japanese peer AEON.

The new Kuki-Miyashiro facility, which will go live in 2027, will operate using the Ocado Smart Platform. The first Ocado-AEON CFC was opened in Midori-ku in July 2023, while the second in Hachioji is due to go live in 2026.

"Today is an exciting moment for AEON and Ocado's relationship as we deepen our already strong partnership," said Ocado's chief executive Tim Steiner.

Ocado also announced that AEON will upgrade its live operations with the latest Ocado technologies, such as its On-Grid Robotic Pick.

"This will bring increasing levels of labour productivity to AEON's operations, enabling them to further reduce the cost to serve and address long-term challenges of labour availability in Japan," the company announced.