Ocado Group is to construct a third customer fulfilment centre (CFC) with Aeon to expand its grocery operations in Japan.

The new CFC in Kuki-Miyashiro will go live in 2027, and builds on the technology company’s exclusive partnership with the Japanese retailer which since 2019 has looked to develop the online operations of the Aeon Next grocery business using the Ocado Smart Platform.

The first CFC in Honda-cho, Midori-ku, Chiba-city opened in July 2023, serving customers in the Kanto region, followed by a second CFC based in Hachioji, due to go live in 2026.

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The service offers the widest range of products available in the Japanese grocery market, while Ocado’s technology looks to enable “world-leading” levels of freshness and convenience.

As well as the expanded network, Aeon is to upgrade its live operations with the group’s latest technologies, including on-grid robotic pick.

This will enable the firm to further reduce the cost to serve and address long-term challenges of labour availability in Japan.

Ocado Group CEO Tim Steiner said: “Today is an exciting moment for Aeon and Ocado’s relationship as we deepen our already strong partnership.

“As demonstrated by the state-of-the-art CFC live in Honda, Ocado is helping Aeon Next to provide a seamless online grocery experience to customers across Tokyo. We can’t wait to bring this service to even more customers in the years to come.”