Lotte Mart Unveils First Automated Grocery Fulfillment Center in Busan
Key Takeaways
- •Lotte Mart has inaugurated Zetta Smart Center Busan as its first automated customer fulfillment center under a 1 trillion won logistics modernization initiative.
- •The four-story, 40,000-square-meter facility can process up to 35,000 individual products and automates the full range of e-commerce grocery operations including picking, packing, and delivery preparation.
- •The center is the first in Korea to deploy Ocado Group's Smart Platform, which leverages robotics, AI, and big data analytics to optimize demand forecasting and logistics coordination.
- •Ocado's automation platform is already utilized by major international grocery retailers such as Kroger in the United States and Marks & Spencer in the United Kingdom.
- •The investment comes as Lotte Shopping seeks to improve fulfillment speed and operating efficiency to compete with South Korean e-commerce leaders like Coupang, Market Kurly, and Naver Shopping.
Lotte Mart has inaugurated its first automated customer fulfillment center (CFC) in Busan, marking a significant step in the South Korean retailer's 1 trillion won ($710.3 million) initiative to modernize its online grocery logistics network.
The four-story facility, named Zetta Smart Center Busan, covers 40,000 square meters and is capable of handling up to 35,000 individual products. The center automates the full spectrum of e-commerce grocery operations, including goods receiving, product picking, packing, and last-mile delivery preparation. According to Lotte Mart, the facility will process online grocery orders serving customers across Busan and the broader southeastern region of South Korea.
The Zetta Smart Center Busan is the first facility in Korea to deploy the Smart Platform developed by Ocado Group, a British retail technology company specializing in automated grocery fulfillment. Ocado's system integrates robotics, artificial intelligence, and big data analytics to optimize demand forecasting, order management, and logistics coordination. The platform is already used by major international grocery retailers, including Kroger in the United States and Marks & Spencer in the United Kingdom. For Lotte, the Ocado partnership provides access to a proven automation platform that international peers have used to reduce fulfillment costs and improve delivery reliability.
Lotte Mart's parent company, Lotte Shopping, has been investing in its online grocery infrastructure as South Korea's e-commerce grocery sector continues to expand, driven by high internet penetration and consumer demand for fresh-food delivery. The new center represents one of the company's largest single logistics investments to date. The move comes as South Korea's online grocery market remains intensely competitive, with platform leaders such as Coupang, Market Kurly, and Naver Shopping vying for share through ultra-fast and dawn delivery services. For traditional big-box retailers like Lotte, automation is increasingly seen as a way to close the gap on fulfillment speed and operating efficiency.
Source: Korea Herald
