Ocado pens deal with Spanish grocer as sales soar

Ocado and Alcampo parent company Auchan Retail will partner to build a customer fulfilment centre to serve the Madrid region from 2024, with more to be added at later dates.

Alcampo will utilise Ocado’s in-store solutions to offer more efficient picking from its hypermarkets – covering both grocery and non-food categories.

Ocado will also provide Alcampo with an end-to-end software platform and a comprehensive suite of engineering and support services.

The grocer said Ocado and Auchan Retail will explore further expansion opportunities in other geographies in future.

The news comes as Ocado recorded its results for the 26 weeks to May 30, where revenues jumped 21% year on year to £1.3bn.

Ocado’s retail arm, which is now a 50:50 joint venture with Marks & Spencer, also reported a 20% increase in revenues to £1.2bn, as it experienced strong new customer acquisitions and order growth despite the lifting of lockdown restrictions.

The grocer now has seven out of 10 partners live on its Ocado Smart Platform, and ramped up its customer fulfilment centres to include a mini one in Bristol as well as the first two for its US partner Kroger.

Chief executive Tim Stenier said: “As we head towards a post Covid-19 future, it is increasingly clear that the landscape for grocery worldwide has changed, for good. Over the last 18 months, we have shown that the Ocado model works even in the most challenging and fluid of environments. 

“We continue to build strong partnerships with our clients and win new clients, based on our 20 years’ experience as a technology company and a food retailer, and these partnerships are the bedrock of our business.

“Our partners will continue to benefit from the full suite of options available from OSP as well as high levels of innovation and problem-solving, which is at the heart of Ocado’s DNA.

“Together, we are reshaping the grocery industry to the benefit of consumers around the world.”