Ocado reveals tie-up with French partner Casino to tap further into market
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Online grocer Ocado has struck a deal with French partner Groupe Casino for a new joint venture as part of a wider move to expand its offering across France.
The group said it had signed a preliminary agreement to extend its existing partnership with Groupe Casino – owner of French supermarket giant Casino – launching a tie-up that will see them offer logistics services for retailer warehouses.
This will include project management for warehouse construction and set-up, as well as the recruitment and operations management of staff at the sites.
The deal will also allow Ocado to offer its software to retailers across France for the first time as it taps into the surge in online shopping across the country.
Tim Steiner, chief executive of Ocado, said: “The online grocery channel in France has reached an inflection point, with a huge rise in demand for compelling, affordable and efficient grocery e-commerce propositions.”
He added: “This announcement marks a deepening of the relationship between Groupe Casino and Ocado Group, and it will further support the capital light expansion of our partnership into other French regions.
“For the first time, it will also open up the whole of the French grocery market to Ocado’s solutions.”
The group also announced a move to bring on board French online retailer Cdiscount’s Octopia marketplace platform into its own Ocado Smart Platform, which it said will offer new “flexibility and functionality to its global partners”.
Ocado said there will not be any capital costs of the joint venture with Casino.
Casino will also start to roll out Ocado’s in-store fulfilment software across its Monoprix store estate.
Groupe Casino boss Jean-Charles Naouri said: “After having experienced the success of the Ocado solution with Monoprix Plus, Casino Plus and Naturalia Marche Bio, the French consumers will be able to benefit from new, even more efficient e-commerce services, making their daily needs even easier.”
Ocado recently revealed the impact of investments in new robots and automatic warehouses as losses trebled last year from £52.3 million to £176.9 million in the 12 months to November 28.
As well as its own distribution hubs and warehouses, Ocado also offers warehouse support and software to other retailers.
Its UK retail grocery operation is a 50/50 joint venture with Marks & Spencer.
