Coles Group’s Exclusive Agreement with Ocado Group plc


HWL Ebsworth has advised Coles Group Limited on an exclusive services agreement with Ocado Group plc to bring its leading online grocery platform, automated single pick fulfilment technology and home delivery solution to Australia before the end of the 2023 financial year.

Under the agreement, Ocado will partner with Coles in Australia to launch an end-to-end online grocery shopping solution, including:

Significantly enhanced customer ordering and delivery experience, supported by end-to-end proprietary software applications and technology solutions known as the Ocado Smart Platform (OSP);

Two state-of-the-art automated customer fulfilment centres (CFCs), one located in each of metropolitan Melbourne and Sydney. Ocado will be responsible for the installation of the material handling equipment in the CFCs, including maintaining the equipment; and

Last-mile routing management technology to optimise delivery efficiency and customer service.

Coles Online has sales of $1 billion on an annualised basis and represents around 3% of Supermarket sales. Coles Online has capability to deliver to over 90% of Australian households and recently launched a national same day delivery offer for customers. Ocado has also entered into partnerships with leading global retailers including Marks & Spencer (UK), Groupe Casino (France), Sobeys (Canada), ICA (Sweden) and Kroger (USA).

The deal team was led by Jason O’Connell (Picture) and Brendan Earle with assistance from Special Counsel Cam Steele and Iain McLaren.

Involved fees earner: Brendan Earle – Herbert Smith Freehills; Iain McLaren – HWL Ebsworth; Jason O’Connell – HWL Ebsworth; Cam Steele – HWL Ebsworth;

Law Firms: Herbert Smith Freehills; HWL Ebsworth;

Clients: Coles Group Ltd;