Coles is in early talks with UK-based Ocado Group to explore in-store robotics for picking and packing online grocery orders, aiming to cut costs and speed up delivery times.

The potential technology trial would help the retailer fulfil express orders directly from store aisles without investing in another large automated warehouse.

Under the proposed trial, robotic systems would operate inside existing stores, building on the companies’ first Customer Fulfilment Centre opened in Victoria in 2024 following a partnership established in March 2019. Deploying automated micro-fulfilment in active supermarkets allows the grocer to serve dense urban pockets where large distribution facilities are either too distant or too expensive to construct.

Ocado’s store-level technology is designed to operate in tighter operational spaces than the vast grid systems seen in regional depots. For Coles, integrating robotics into physical retail sites represents an operational shift from standalone logistics infrastructure toward hybrid retail facilities that double as mini-fulfilment centres.

Supermarket operators across the Asia-Pacific region face intense pressure to solve the unit economics of instant and same-day delivery. Building multi-million-dollar automated distribution centres works well for scheduled, bulk grocery deliveries across wide metropolitan areas, but it fails on speed and margins when customers demand baskets within two hours. Rival Woolworths has already experimented with automated micro-fulfilment units attached to retail sites to tackle this exact constraint.

For property operators and grocery suppliers, store-level automation changes shelf stocking workflows and backroom inventory allocations. The primary risk sits in execution: retrofitting operational supermarkets with robotic machinery often disrupts walk-in shoppers and complicates inventory replenishment during peak trading hours.

Source link