Online-only retailer Ocado has announced an agreement with an as-yet-unnamed ‘regional European retailer’ to use its Ocado Smart Platform (OSP) system.
In a statement, the group said that it will provide the partner with its ‘full software platform, know-how and support services, required to create an efficient and intelligent online grocery business, with orders initially fulfilled from their manually operated centralised warehouse’.
It added that the unnamed retailer wishes to remain anonymous until its online platform is launched, ‘in order to retain competitive advantage.’
About OSP
Ocado’s OSP system was first rolled out to UK retailer Morrisons in 2013, to assist with the expansion of its online business. This agreement was extended in 2016.
‘[Using OSP comprises] access to Ocado's entire end-to-end proprietary software, required to operate an online grocery business,’ according to the group.
System Benefits
“The benefits of our integrated solution are clear,” Tim Steiner, Ocado’s chief executive, said of the latest announcement. “As this particular retailer looks to develop its online offering, the agreement we have signed provides the flexibility to expand its capacity efficiently in the future. We look forward to working closely with our new partner in the months and years ahead. Our discussions with other retailers across the globe are ongoing, and we continue to expect to sign multiple deals in the medium term."
Commenting on Ocado’s announcement, Barclays European Food Retail Equity Research said, "This is less impactful a piece of news than might have been expected for a first international deal, and sceptics will be able to question whether this is as important as it might first appear, but, at the bare minimum, a third party has signed a deal with Ocado of its own free will – something that some doubted would ever happen."
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
