Ocado Technology are the proud creators of the software and systems that power the Ocado Smart Platform (OSP), the most advanced end-to-end eCommerce, fulfilment, and logistics platform.
Some of the world's largest brick-and-mortar grocery stores have selected OSP to sell groceries online profitably, scalably, and sustainably.
Ocado and Morrisons first entered into an agreement in May 2013. Morrisons is one of the top UK grocery retailers in terms of market share and the first Ocado Solutions client.
Ocado provides Morrisons with automation technology, logistics, distribution services and an end-to-end online platform. This includes the webshop and mobile apps, the routing and planning software, the warehouse systems and head office systems needed to support and operate their online retail business.
Morrisons is operating online under its own banner, fully controlling its commercial strategy and offering its own assortment and branded products. Morrisons retains full control of its customers and business data, and defines all the customer facing aspects of its online proposition.
Morrisons initially agreed with Ocado to operate its online grocery fulfilment from a shared CFC in Dordon, near to Morrisons’ core customer base. Morrisons registered run-rate exit sales of almost £200m* and reached nearly 50% of UK population coverage after its first year of grocery e-commerce operations. By its third year of operations, Morrisons achieved a full year online turnover of over £300m*.
This exceptional growth is a testament to the unique advantages of the collaboration between a leading retailer and the best in class platform provided by Ocado Solutions.
In August 2016 Morrisons and Ocado extended the term of their agreement to share the capacity of a new CFC in Erith, 15 miles east of London. Since 2017, Ocado Solutions has also been providing Morrisons with the software required to fulfill customer orders from its store network via a store pick solution.
* Data based on Morrisons corporate results presentations
May 2018 saw Ocado sign a partnership agreement with Sweden’s leading grocer - ICA Group (“ICA”) - to launch a home delivery e-commerce service using Ocado Smart Platform (“OSP”). ICA’s 2017 revenue of SEK 106.5bn represents around 36% market share and was generated from 1,300 stores operated using a co-operative business model
With this agreement, Ocado has tailored its product offering to accommodate ICA’s business model which is based upon independent retailer-owned stores. This demonstrates the agility of the platform and embodies Ocado’s commitment to work collaboratively with our partners to meet the unique challenges they face.
Anders Svensson, CEO of ICA Sweden and Deputy CEO of ICA Group, said:
“ Our cooperation with Ocado entails that they will adapt their world-leading eCommerce platform to ICA’s business model with independent retailers. At the same time, we will benefit from the fact that Ocado are continuously developing the platform for themselves and other leading grocery retailers around the world. An automated eCommerce warehouse will enable us to offer customers a wider product range online and better deliveries while at the same time streamlining ICA’s logistics flows. ”
Each independent ICA retailer will have its own dedicated webshop and each retailer will be able to make autonomous decisions on its product range and pricing. It also means each ICA retailer will retain complete control of all its customer and business data. The agreement stipulates that ICA will have exclusive adoption of the Ocado Smart Platform in Sweden, provided it meets pre-agreed growth targets.
ICA and Ocado will together develop an automated CFC which will serve the Greater Stockholm area. The build and launch is expected to take about three years and both companies are open to the possibility of building further CFCs elsewhere in Sweden. The agreement also involves ICA transitioning its current store pick operations to Ocado Smart Platform.
Ocado entered the French market in November 2017 through a partnership agreement to provide Groupe Casino with a comprehensive end-to-end online grocery solution powered by Ocado Smart Platform (“OSP”). Groupe Casino is a major player in French grocery retail, and also operates in Latin America and the Indian Ocean region. It owns a balanced portfolio of brands spanning multiple formats including Géant Casino, Casino, Monoprix and Franprix, and recorded consolidated net sales of over €37 billion in 2017. The first of Groupe Casino’s banners to benefit from Ocado’s grocery e-commerce platform will be Monoprix.fr.
Monoprix has a premium proposition and its customers expect a market-leading experience — consistently exceptional service and unrivalled freshness. Ocado has designed OSP to offer the best possible customer experience and Casino will be able to fully leverage the end-to-end nature of the platform, as well as innovative data science techniques, to allow us to deliver on this promise.
Groupe Casino was the first international retailer to agree to develop an end-to-end solution with OSP which includes:
Best-in-class front-end website functionality, which will be supported by Ocado’s proprietary ‘webshop’ and mobile grocery ordering applications
The construction of Ocado’s state-of-the-art automated customer fulfilment centres (“CFCs”)
Last-mile routing technology to optimise delivery efficiency, customer service excellence and punctuality
Groupe Casino will fully control its commercial strategy, offering its own assortment and branded products. It will also retain full control of its customers and business data, and shall continue to define all the customer facing aspects of its online proposition.
Groupe Casino and Ocado both have strong teams dedicated to this project and together they are developing a CFC which will serve Greater Paris and the Normandy and Hauts de France regions. A CFC offering home delivery at this scale represents a new era in French grocery retail, given the country’s current preference towards Click & Collect online shopping.
Jean-Charles Naouri, CEO of Groupe Casino, said:
" 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 is very proud to have sealed this deal with Ocado which will further strengthen the quality of service available to its customers, at the core of its commitments for 120 years. "
The build and launch of the first CFC is expected to take at least two years and both companies are looking into the possibility of building further CFCs to serve other large metropolitan areas in France.
In January 2018, Ocado signed a partnership agreement with Sobeys Inc. (“Sobeys”) to launch an online grocery business in Canada, using the Ocado Smart Platform (“OSP”). Sobeys is the second largest food retailer in Canada generating C$24bn in sales revenue in 2017 from over 1,500 stores. It employs more than 125,000 people across its portfolio of banners including Sobeys, Safeway, IGA, Foodland, FreshCo, Thrifty Foods, and Lawton’s Drug Stores.
The transformational agreement involves Sobeys building a distinct eCommerce department and will allow the firm to enter an entirely new online market - Toronto - where it has previously chosen not to offer customers an online service.
Michael Medline, President & CEO of Sobeys Inc., said:
“ Sobeys intends to play to win in Canadian online grocery shopping. We are very excited to bring this best-in-the-world grocery eCommerce experience to Canadian customers. This unique and innovative Sobeys and Ocado experience will offer consumers the biggest selection, freshest products and most reliable delivery available anywhere on the planet. Our end-to-end eCommerce solution will allow Sobeys to build an online offer in a manner that is profitable and creates exceptional value for our customers, investors and supplier partners. ”
Ocado will provide Sobey’s with an end-to-end solution including front-end website functionality, the construction of an automated CFC and a suite of last-mile routing technology. Sobeys will continue to fully control its commercial strategy, and its business and customer data. The partnership also grants Sobeys exclusive adoption of the Ocado Smart Platform in Canada, provided it meets pre-agreed growth targets.
Sobeys and Ocado will develop the first state-of-the-art CFC which shall serve the Greater Toronto area. The build and launch is expected to take about two years and both companies are assessing the case for building further CFCs to serve other large metropolitan areas across the country.