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Ocado Group PLC said on Tuesday it had struck another international deal for its technology offering.
The Hertfordshire, England-based online grocer said its technology business, Ocado Solutions Ltd, has signed an agreement with Auchan Retail Poland to develop its online business using the Ocado Smart Platform.
Auchan Retail is a French retail company, with operations across 13 countries. Auchan Poland will build a customer fulfilment centre with Ocado, to serve the Warsaw region from 2024. Additional fulfilment centres will follow, Ocado said.
Ocado's latest technology such as the 600 Series bot, automated frameload, and on-grid robotic pick will all be part of the deal.
Auchan will also use Ocado's in-store fulfilment software across its Polish hypermarkets to increase efficiency in the picking process.
Ocado already has an active partnership with Auchan Retail for its Spanish Alcampo brand, announced last July. The Poland partnership is the second between the two companies, with further partnerships in other geographies being explored, Ocado said.
Ocado said the fee structure will be similar to those agreed with other international partners, with an upfront payment, then ongoing fees linked to sales achieved, capacity within the centre, and services.
Shares in Ocado were down 1.1% to 1,180.00 pence each in London on Tuesday morning.
‘We are pleased to bring a second Auchan business to our global platform, and to welcome Auchan Poland to the club of innovative and forward-looking retailers who are using the Ocado Smart Platform to power their online grocery business,’ Ocado Chief Executive Officer Tim Steiner.
Ocado expects ‘significant long term value’ from the deal, but earnings will be negligible until operations commence. Additional capital expenditure will be ‘minimal’ in its financial year ending in November, with most to come in the 18 months prior to the opening of the centre in 2024.
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