(Alliance News) - Ocado Group PLC on Thursday said it has signed a pact with Groupe Casino to extend their partnership in France, creating a new joint venture to support the development of customer fulfilment centres.
The two believe there is "significant and growing demand" for online grocery services across the French market. The joint venture will provide logistics services for future CFCs, such as project management for warehouse construction and set-up.
"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. Our growing partnership and live operations in Ile-de-France have set the highest bar for the experience French consumers can expect in online grocery," said Ocado Chief Executive Tim Steiner.
Alongside the joint venture, Ocado Solutions will offer its automated fulfilment and software solutions to all grocery retailers in the French market. Groupe Casino will shortly expand its deployment of Ocado's solutions to include the use of Ocado's In-Store Fulfilment software across the Monoprix store estate.
Once finalised, the venture is not expected to impact the current live operations of the partnership between Ocado and Groupe Casino. It is also not expected to come with any initial capital cost.
Ocado's Steiner 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."
Shares in online grocer Ocado were up 1.6% at 1,364.00 pence in London early Thursday.
By Lucy Heming; lucyheming@alliancenews.com
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