Ocado signs technology deal with European retailer

 
Helen Cahill
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George Osborne Vists's Ocado Customer Fulfilment Centre
An Ocado customer fulfilment cetnre (Source: Getty)

Ocado has signed a new deal with a retailer to share its software platform.

Ocado declined to name its new partner, but said it was a regional European retailer. The Ocado Smart Platform (OSP) will provide the support services the retailer needs to run an online business, helping the retailer fulfil online orders.

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The European retailer currently has a warehouse where orders are processed manually, but its deal with Ocado gives it a right to request installation of a robotic system, which would be controlled using Ocado's technology. Any such arrangement would be drawn up separately, however.

It is the first overseas deal that Ocado has made with a retailer, and it comes after it began a similar partnership with Morrisons. Ocado first agreed its deal with Morrisons in 2013, and last year the pair decided to extend their partnership.

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There are also rumours that a deal with Marks and Spencer could be in the works.

Tim Steiner, chief executive of Ocado, said the group is in ongoing discussions with other retailers across the globe and intends to close "multiple deals in the medium term".

Steiner added: "This is an exciting step in the evolution of our business and in the delivery of our strategy.

"The benefits of our integrated solution are clear. 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."

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