Ocado Group this week confirmed that Nemlig will be its European retailer. Under the agreement, Nemlig and Ocado will build a state-of-the-art customer fulfilment center, or CFC, near Copenhagen.
The partnership will also support the continued development and growth of Nemlig.com. The Brøndby, Denmark-based company is one of the largest pure-play online supermarkets in the country, with sales of over 3.3 billion DKK ($514 million U.S.) in the 2025-2026 fiscal year. It currently uses manual fulfillment for thousands of orders from shoppers across Denmark.
Nemlig plans continue to operate its existing webstore and manage last-mile delivery to its customers. The CFC will be fully integrated into these operations, with completed orders handed on to its third-party delivery partners.
Nemlig to use the latest robots
The partners said they will equip the new CFC with the latest Ocado technology, including the 600 Series Bot, on-grid robotic pick, and a fully automated freezer.
“This deal shows our platform’s flexibility in practice and demonstrates how far the efficiency of our technology has come,” stated Tim Steiner, the founder and CEO of Ocado Group. “Nemlig competes hard on price, and this partnership demonstrates our platform’s ability to deliver profitable online economics for even the most price-competitive retailers. Pure-play online retailers are taking a growing share of the market globally, and partnerships like this continue to show why Ocado’s technology is a game-changer in the online channel.”
Nemlig said it expects to quickly transfer its existing order volumes into the CFC in 2028, greatly enhancing its fulfilment operations, and generating a significant increase in profitability from go-live.
Ocado diversifies after struggles to get ASRS traction
Founded in 2000, Ocado started offering its automated storage and retrieval systems (ASRS) for the grocery industry in 2015. The Hatfield, U.K.-based company was an early leader in the ASRS market, gaining major brands such as Kroger and Sobeys as customers.
However, Ocado has struggled to retain these customers in recent years. For example, Kroger began scaling back its deployments with the ASRS provider in 2023. It announced plans to close three more Ocado sites late last year. Kroger said it plans to focus on its store-level fulfillment rather than its robotic network.
In addition, Ocado in January said that Sobeys would be closing its CFC in Calgary, Alberta. Sobeys stated that it was closing the facility largely due to the Alberta grocery e-commerce market’s size and rate of growth.
Ocado has worked to diversify its portfolio. In July 2023, Ocado acquired 6 River Systems from Shopify, adding the Chuck autonomous mobile robots (AMRs) to its portfolio. It debuted the Porter pallet-moving AMR in 2025.