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Ocado to Build Robot Warehouses in Japan

Written by CRETech | Dec 3, 2019 12:00:37 PM

Ocado Group Plc got one of its biggest contracts yet to set up robotic warehouses for online grocery sales with Japanese retailer Aeon Co., expanding the U.K. company’s reach into Asia. Ocado’s shares surged as much as 15% early Friday in London, the most in a year and a half on an intraday basis. The British company said it will develop a network of automated warehouses to facilitate home delivery to Japanese consumers, with expected sales capacity of around 1 trillion yen ($9.1 billion) by 2035. That would make the deal comparable in size to Ocado’s earlier agreement with Kroger Co. in the U.S., analysts at Morgan Stanley said in a note.