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BRIEF-Coles Group Enters Exclusive Partnership With Ocado ‍Group PLC

Published 26/03/2019, 08:46 am
© Reuters.  BRIEF-Coles Group Enters Exclusive Partnership With Ocado ‍Group PLC
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March 26 (Reuters) - Coles Group Ltd COL.AX :

* ENTERS EXCLUSIVE PARTNERSHIP WITH OCADO

* EACH CFC HAS AN ESTIMATED SALES CAPACITY OF BETWEEN APPROXIMATELY $500M AND $750M PER ANNUM

* UNDER SERVICE AGREEMENT COLES WILL GAIN ACCESS TO OCADO'S OCADO SMART PLATFORM (OSP) TECHNOLOGY

* CAPITAL EXPENDITURE INCLUSIVE OF UPFRONT OCADO FEES IS EXPECTED TO BE $130M TO $150M OVER FOUR YEAR DEVELOPMENT AND CONSTRUCTION PERIOD

* INITIATIVE IS EXPECTED TO APPROXIMATELY DOUBLE COLES' CURRENT AUSTRALIA-WIDE HOME DELIVERY CAPACITY

* INITIATIVE EXPECTED TO LEAD TO AN IMPROVED PROFIT MARGIN FOR COLES ONLINE

* TWO AUTOMATED CUSTOMER FULFILLMENT CENTRES ARE EXPECTED TO BE OPERATIONAL BY FY23

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