Ocado secures 4th international deal with Sweden’s ICA

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Ocado ICA

Ocado has announced that has secures its fourth international deal with Swedish supermarket group ICA.

Under the terms of the agreement, the UK-based online-only grocery retailer will launch “end-to-end” solutions for ICA’s online services, including a website and the construction of an automated warehouse designed for ecommerce.

Ocado will also invest in installing internal infrastructure at the warehouse, as well as robots.

In addition, ICA and Ocado said they would develop a brand new customer fulfilment centre in the Greater Stockholm area.

The Swedish deal is the latest in a string of overseas partnerships Ocado has struck in the past year, having coming under pressure from investors over a delay in securing an international deal after missing a self-imposed deadline of the end of 2015.

Other deals so far locked in by Ocado include one in France with supermarket giant Groupe Casino and another in Canada with Sobeys.

Ocado expected the Swedish expansion would create “significant long-term” value to the business.

“ICA has a strong track record of growth and innovation and our smart platform will give the ICA-retailers the opportunity to provide their customers with new levels of service, convenience and value,” Ocado Services chief executive Luke Jensen said.

“Our flexible, scalable and modular solution is uniquely positioned to address a fresh set of challenges and allow ICA to deliver its ambitions for online.”

ICA has around 1300 stores across Sweden and a market share of 36 per cent.

In 2017, it reported sales of 106.5 billion Swedish krona (£8.9 billion).

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