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Shin Dong-bin, the chairman of Lotte Group, and Tim Steiner, the CEO of Ocado Group, have been each on the signing ceremony, which happened at Lotte World Tower in Seoul. | Credit: Lotte
Lotte Shopping introduced that it has signed a partnership settlement with Ocado, a world retail know-how firm primarily based in Britain, to reinforce its on-line grocery options in Korea. The firm will make investments 1 trillion received ($705,060,000) by 2030 in “smart logistics” that focuses on recent meals to steer the 135 trillion received home on-line grocery market.
Under the phrases of the deal, Lotte Shopping will be capable of use the Ocado Smart Platform (OSP) for all of its on-line procuring. OSP is a know-how resolution that covers the entire course of of shopping for recent meals on-line, from attracting clients by means of cellular apps to delivering orders.
It makes use of an automatic buyer success heart (CFC), robots it constructed itself, synthetic intelligence, and massive knowledge to assist retailers do quick, correct supply in probably the most environment friendly approach. OSP helped Ocado develop right into a enterprise that made about 4.84 trillion received ($2.49 billion) in gross sales final yr.
Over the subsequent eight years, Lotte Shopping plans to construct six CFCs. The first one will open in 2025. The southern a part of Gyeonggi Province and Busan are two locations that may very well be the “test bed.”
“We are not only talking about our department stores, supermarkets or online shopping mall Lotte ON, for which we want to seek new changes together with Ocado. The group’s retail HQ department is working on an overall strategy. We plan to build a completely new online platform specializing in the e-commerce sector,” a Lotte Shopping official stated.
Lotte desires to make huge adjustments to its platform for cellular procuring. The previous Lotte ON will work with the Lotte Department Store to show it right into a high-end on-line mall.
“We will also establish an integrated sourcing system that allows people to purchase products together from local farms. Lotte will be the only company that integrates on-and-offline grocery stores,” the official added.
Shin Dong-bin, the chairman of Lotte Group stated: “I hope the cooperation between Lotte and Ocado will provide an opportunity for the two companies to grow together.”