What: Lotte Group has initiated the construction of an AI-powered Customer Fulfillment Center (CFC) in Busan in collaboration with UK's retail tech firm, Ocado.

Why it is important: Lotte seeks to differentiate its grocery services by adapting them to fit the Korean lifestyle, including eco-friendly delivery methods and strategies catering specifically to apartment living.  The company plans to utilize data and AI for efficient inventory management and automated processes, including delivery routes.

This endeavour marks Lotte's expansion into the online grocery market, aiming to compete with companies like Coupang and Kurly. The CFC, employing the Ocado Smart Platform, promises enhanced spatial efficiency and a doubling of product capacity compared to conventional centres.

The initiative also aims to enhance the online shopping experience, with up to 33 daily dispatches and a focus on analysing customer behaviour.

The project is expected to generate over 2,000 new jobs and is part of Lotte's larger plan to establish six OSP-based fulfilment centres nationwide by 2030.

Lotte breaks ground for its first AI-based fulfillment center in Busan