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Ocado Announces New Customer In Spain, Sees First-Half Sales Rise

Published on Jul 6 2021 8:40 AM in Technology tagged: Featured Post / Ocado / Alcampo / Auchan Retail

Ocado Announces New Customer In Spain, Sees First-Half Sales Rise

Ocado has announced a deal to develop the online business of Auchan Retail's Spanish arm, Alcampo, with the online and technology group also seeing first-half sales rise.

Under the terms of the agreement, Alcampo will use the Ocado Smart Platform to help expand its online business across the country.

The two businesses will develop a customer fulfilment centre (CFC) to serve the Madrid region from 2024, with additional CFCs to follow.

'As Spanish customers continue to shift more of their spend online, the demand for competitively priced, high quality grocery e-commerce will continue to grow,' Ocado said in a statement.

'This partnership will enable Alcampo to deliver a world-leading experience online to grocery customers across Spain.'

To date, Ocado's technology arm has signed partnership deals with supermarket groups including Kroger in the United States, Casino in France and Aeon in Japan.

First-Half Performance

In the first half of its financial year, which covered the six-month period to 30 May, Ocado posted a 19.8% rise in retail revenue to £1.2 billion. The continuation of lockdowns in the UK during the period helped draw new customers to its joint venture with Marks & Spencer, it said.

Profits in its core retail business rose by 58.4%. Elsewhere, revenue in its UK Solutions & Logistics arm was up 13.1%, with profit up 6.4%.

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However, the company reported a £23.6 million loss before tax, compared to a £40.6 million loss for the same period last year.

Ocado says that the pandemic has resulted in a permanent shift to online grocery shopping, helping boost demand for its technology offering with retailers around the world. It recently announced an investment in autonomous vehicle firm Oxbotica, and also unveiled a new online media platform for suppliers.

Changing Landscape For Retail

"As we head towards a post COVID-19 future, it is increasingly clear that the landscape for grocery worldwide has changed, for good," said Tim Steiner, Ocado chief executive.

|We continue to build strong partnerships with our clients and win new clients, based on our twenty year 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."

News by Reuters, edited by ESM. For more Supply Chain news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.

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