UK-based online supermarket company Ocado has signed an agreement with Canadian food retailer Sobeys, under which the latter will be using the Ocado Smart Platform (OSP) to set up a new online grocery business in Canada.

Under the agreement, Ocado will be providing a comprehensive and customised suite of support and engineering services to enable sustainable e-commerce operations.

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Sobeys currently operates more than 1,500 stores across the country and generated sales of C$23.8bn ($19bn) in the last fiscal year.

“Our end-to-end e-commerce solution will allow Sobeys to build an online offer in a manner that is profitable and creates exceptional value for our customers, investors and supplier partners.”

Sobeys president and CEO Michael Medline said: “Sobeys intends to play to win in Canadian online grocery shopping. We are very excited to bring this best-in-the-world grocery e-commerce experience to Canadian customers.

“This unique and innovative Sobeys and Ocado experience will offer consumers the biggest selection, freshest products and most reliable delivery available anywhere on the planet. Our end-to-end e-commerce solution will allow Sobeys to build an online offer in a manner that is profitable and creates exceptional value for our customers, investors and supplier partners.”

Sobeys and Ocado will also be developing a new customer fulfilment centre (CFC) in the Greater Toronto area, which is expected to take place over the next two years.

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The two companies are also planning to develop other CFCs in Canada’s urban areas.

Ocado Group CEO Tim Steiner said: “We are delighted to be working with one of the leaders in North American grocery retailing. Sobeys is a highly successful and much admired Canadian business and we are proud that they have chosen Ocado Solutions to partner with to build their online grocery business.”