Ocado enters South Korea with Lotte Shopping deal (updated)
01/11/2022 07:35
(Adds detail)
LONDON, Nov 1 (Reuters) - Ocado OCDO.L , the British
online supermarket and technology group, has entered the South
Korean market through a partnership deal with Lotte Shopping
023530.KS , the companies said on Tuesday.
The deal will see Ocado and Lotte develop a network of
robotic warehouses, or Customer Fulfilment Centres (CFCS) as
Ocado calls them, across the South Korean market to expand the
retailer's online shopping business.
Six CFCs are planned by 2028, with the first scheduled
to go live in 2025.
Ocado's in-store fulfilment (ISF) technology will also
be rolled out across Lotte's store estate from 2024.
Fees to be paid by Lotte to Ocado are similar to those
agreed with its other international partners, which include
Kroger Co KR.N in the United States, Aeon 8267.T in Japan
and Casino CASP.PA in France.
The pair said that the deal was exclusive in South
Korea, meaning that Ocado will not take another partner in that
country.
Lotte will pay certain fees upfront and during the
development phase, then ongoing fees linked to both sales
achieved and installed capacity within the CFC and service
criteria.
Lotte Shopping is part of Lotte Group, one of the
largest business conglomerates in South Korea.
(Reporting by James Davey; editing by Sarah Young)
((james.davey@thomsonreuters.com))