Sobeys Inc. has signed a partnership deal with British company Ocado Group to help build the Canadian retailer's online grocery shopping business.
Under the agreement, Ocado will partner exclusively in Canada with Sobeys on support and engineering services.
Ocado has its own grocery and retail businesses under Ocado.com and other specialist shop banners as well as a business that is responsible for corporate partnering.
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Canadian grocers have been ramping up their online efforts in recent months following Amazon's acquisition of Whole Foods last year.
Sobeys and Ocado are expected to develop their first customer fulfillment centre in the Toronto area.
It is expected to take about two years to build.