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● Introducing latest Ocado Smart Platform innovations
● Built for one of the world’s most advanced online grocery markets
● Supports Dawn Delivery, bringing fresh grocery orders to customers pre-7am
Ocado Group ("Ocado") today announced the launch of its first Customer Fulfilment Centre ("CFC") with Lotte Shopping in South Korea.
Ocado signed a partnership with Lotte in 2022 to help the South Korean grocery leader extend its presence to the rapidly growing online channel. In 2025, Lotte launched with the Ocado Smart Platform, fulfilling orders using Ocado's in-store fulfilment ("ISF") software. Today, Lotte and Ocado launched their first automated CFC, which will serve a catchment covering 4m households across Busan and the broader Yeongnam region.
The Busan CFC also introduces multiple innovations for the first time. These include the launch of Ocado's fully automated freezer (“Auto-Freezer”), bringing Ocado's proprietary 'hive and bot' automation into temperatures as low as -25° C. The Auto-Freezer is expected to achieve more than double the productivity of a traditional manual freezer. The site will also support dawn delivery, enabling freshly packed grocery orders to reach customers’ homes before 7am. This delivery option is a significant and unique characteristic of the South Korean market.
The site is also expected to be the most environmentally efficient Ocado CFC in the world, supporting a 100% Electric Vehicle fleet for daytime deliveries and operating more energy efficient 3D-printed bots, with multi-temperature totes to maximise storage density for delivery. The widespread installation of solar panels is expected by Lotte to reduce annual carbon emissions by over 1,000 tonnes.
South Korea's online grocery market has grown rapidly in recent years. According to Statistics Korea, online grocery transaction value surged from KRW 17.17 trillion (approx. £8.7 billion) in 2019 to KRW 52.3 trillion (approx. £26.5 billion) last year, representing a compound annual growth rate of 20.4%. Online penetration is now 28% of total grocery retail sales, significantly higher than the majority of major grocery markets worldwide.
Nick De La Vega, Chief Revenue Officer, Ocado Group, said:
“This is another major milestone for Ocado as we launch one of our most advanced CFCs to date in one of the world's leading markets for grocery e-commerce. Online is fast becoming the main grocery channel for many customers across South Korea, and we are excited to help Lotte deliver a step-change in the choice, service and experience it offers shoppers."
Cha Woo Chul, Chief Executive Officer, Lotte Mart & Super, said:
“ZETTA Smartcenter Busan is a next-generation online logistics center combining Lotte Mart’s fresh food expertise with UK Ocado’s AI robot logistics technology. By delivering farm-fresh produce on schedule to 4 million households in the Yeongnam region, we will reshape the paradigm of domestic online grocery shopping.
“Backed by world-class robot automation technology, eco-friendly management, safety control, and the creation of 2,000 local jobs, we will establish a model of a trusted, sustainable future logistics center for customers in the Yeongnam region.”
Contacts
Jamie Kerr, Director of Communications (pressoffice@ocadogroup.com)
Lucy Legh, Matt Denham, Jack Gault at Headland Consultancy -
(ocadogroup@headlandconsultancy.com), on +44 (0) 20 3805 4822
Notes to Editors:
About Ocado Group
Ocado Group (LSE: OCDO) is a UK-based technology company providing end-to-end ecommerce and fulfilment solutions to some of the world's largest grocery retailers, alongside clients in apparel, consumer packaged goods, third-party logistics and pharmaceuticals. Ocado also holds a 50% stake in Ocado Retail, its UK joint venture with Marks & Spencer. For over two decades, Ocado has pioneered ecommerce and supply chain innovation, investing in robotics, AI and machine learning, simulation, forecasting and edge intelligence.
About LOTTE Shopping
Since its establishment in 1970, LOTTE Shopping Co., Ltd. has led the advancement of Korea’s retail industry as a comprehensive retail company. By operating a wide range of retail channels - including LOTTE Department Store, LOTTE Mart, LOTTE Super, and LOTTE E-Commerce - LOTTE Shopping delivers new shopping experiences and value to customers through integrated online and offline synergy.
Each Business Division has strengthened its competitiveness in the domestic retail market by responding flexibly to changes in customer lifestyles and offering differentiated products and services. In addition to its domestic operations, LOTTE Shopping is actively expanding its global presence, focusing on the rapidly growing markets of Vietnam and Indonesia.
Technology features of the Busan CFC
600s Robot: Ocado’s latest generation fulfilment robot, 3 times lighter than its predecessor enabling more efficient CFC designs with lower resource intensity.
Auto-Freezer: An automated freezer that brings Ocado’s core robotics into one of the least hospitable warehouse environments, enabling automated picking in -25° C.
On-Grid Robotic Pick (“OGRP”): A robotic picking arm installed on top of the grid to pick and pack groceries with precision, achieving more than 350m picks to date.
Multi-Temperature Totes: A space-saving solution that combines items from different temperature zones into one tote to reduce the number of vans required per order.
Dawn Delivery: A key delivery option in the South Korean market, with fully packed orders delivered to customer doorsteps before 7am.
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Ocado Group’s 600 Series Bot
Ocado's On-Grid Robotic Pick
Ocado and Lotte