French retailer Groupe Casino said Nov. 28 that it signed an agreement with U.K.-based online grocery retailer Ocado Group plc for the development in France of the Ocado smart platform, an end-to-end grocery delivery service.
The build and launch are expected to take at least two years.
Ocado for some time has signaled it was close to signing a deal with an international customer. In lunchtime trading in London, its shares were up 20.5% at 308.6 pence.
Ocado smart platform offers a scalable, modular solution for the shifting offline/online trends in grocery retail. The deal will involve the construction of Ocado's latest generation, state-of-the-art automated warehouse, front-end website functionality, last-mile routing management and big data, real-time implementation. Ocado will invest to install the grid and robots at the automated warehouse.
The deal includes plans to begin the development of a customer fulfillment center using Ocado's proprietary mechanical handling equipment to provide services in the Greater Paris area and the Normandie and Hauts de France regions.
Groupe Casino's Monoprix will offer the largest assortment of food items to customers through its website. "This agreement is a major leap in terms of quality: 50,000 food items will be offered in the first stage to customers in the Greater Paris area with precise and speedy delivery at home and through a platform which makes it achievable to do this profitably," Groupe Casino CEO Jean-Charles Naouri was quoted as saying.
Groupe Casino will make payments to Ocado of upfront fees on signing and during the development phase. It also will pay the ongoing fees related to the use of capacity within the customer fulfillment center and service criteria.
The two companies will consider the development of other customer fulfillment centers near other large urban areas in France.
