Ocado surges on South Korea entry with Lotte Shopping deal

Lotte Shopping

01/11/2022 08:22

** Shares of British online supermarket and technology group
Ocado  OCDO.L  up 17% at 553.4p - top pct gainer on FTSE 100
 .FTSE  index 
    ** Stock headed for best day since May 2018 if gains hold
    ** Co enters the South Korean market through a partnership
deal with Lotte Shopping  023530.KS 
    ** 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 from 2024
    ** 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
    ** Stock has fallen ~72% YTD 
 (Reporting by Radhika Anilkumar in Bengaluru)
 ((Radhika.Anilkumar@thomsonreuters.com))