Ocado strikes deal with European retailer
UK-based Ocado has reached an agreement to help an unnamed European retailer build its online grocery delivery operation. Ocado will be providing its software, “know-how” and support services but – for the moment, at least – the retailer will not be using Ocado’s automated warehouse technology and it will also be using its own staff to do the order-picking.
As such, this deal appears to fall short of the big, beyond-the-UK tie-up that Ocado has been threatening to deliver. Nevertheless, it does mean that Ocado has added an international dimension to its business and it prompted a surge in the company’s share price this morning (5 June).
Ocado won’t be disclosing the name of the retailer until the online deliveries go live. The company has also been tight-lipped about the commercial details of the deal.
In a statement issued today (5 June) Ocado intimated that the relationship could be extended: “The agreement gives the partner the right to request in the future the installation of automated mechanical handling equipment in centralised warehouses, powered by Ocado Smart Platform (OSP) technology, on terms to be separately agreed but within given parameters.”
Furthermore, the statement quoted Ocado CEO Tim Steiner as saying: “Our discussions with other retailers across the globe are ongoing and we continue to expect to sign multiple deals in the medium term.”
