Ocado, Groupe Casino Team for Grocery
November 28, 2017
grocery retailer Ocado Group and Groupe Casino have teamed to develop
the Ocado Smart Platform ("OSP"). The scalable, modular end-to-end
solution provided by the OSP is a unique answer to the opportunities and
challenges posed by shifting offline/online trends in grocery.
This highly commercial formula will be achieved through access to
Ocado's end-to-end solution, including the construction of its latest
generation, state-of-the-art automated warehouse (for which Ocado will
invest to install its grid and its robots), Ocado's best-in-class
front-end web site functionality, last-mile routing management and big
data, real time implementation.
OSP provides multiple advantages to
retailers wishing to operate online including:
•based on proven systems and
infrastructure which Ocado uses in its own business
•both modular (size flexible) and
scalable (can start smaller and scale up on short lead times)
•significant operational cost
•supports a large range
•entire seamless proprietary
software provision updated alongside Ocado's own development programme,
providing "best in class" service for customers
•flexible agreement terms with low
entry cost, ongoing fees linked to installed capacity.
Groupe Casino's banners will benefit from this innovative grocery
e-commerce platform, firstly Monoprix.fr, which will provide its
customers with the largest assortment of food items at the best levels
of services and costs.
The agreement sets out plans for the immediate initiation of the
development of a Customer Fulfilment Centre ("CFC") using Ocado's
proprietary Mechanical Handling Equipment ("MHE") to serve the Greater
Paris area, the Normandie and Hauts de France Regions.The build and
launch is expected to take at least two years.
In consideration of the investments made by Ocado, of maintenance and of
provision of technology, Groupe Casino will pay Ocado certain upfront
fees upon signing,and during the development phase, then ongoing fees
linked to its utilisation of capacity within the CFC and service
In addition to the initial CFC, Groupe Casino and Ocado will consider
further development of other CFCs close to other large urban areas.
Jean-Charles Naouri, CEO of Groupe Casino, said: "Groupe Casino is
pleased to announce the agreement with Ocado Group which will allow it
to develop an integrated customer and logistics platform, considered the
best in the market.
"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."
Steiner, CEO of Ocado, said: "We are delighted that Groupe Casino has
decided to partner with Ocado Solutions to grow and develop its online
food business. We believe that the scalable, modular end-to-end
solutions provided by the Ocado Smart Platform, will allow retailers
such as Groupe Casino to build their online grocery offer in a way that
is profitable and sustainable, creating value for customers, suppliers
"We continue to make investments to commercialise our proprietary
platform and expect this deal to be one of many successful
collaborations with leading retailers to use it the world over."
Luke Jensen, CEO Ocado Solutions, said: "Groupe Casino is a successful
multi-format, multi-banner and multi-channel business with top-three
market positions in all the countries in which it trades. Its decision
to adopt the Ocado Smart Platform to build and drive its online food
business in France gives it a unique, innovative, and world-leading
solution to the challenge of delivering groceries profitably online. We
look forward to working closely with Groupe Casino going forward".