REG - Ocado Group PLC - Statement regarding Auchan Poland partnership

OcadoAnnouncement

15/03/2022 07:00

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RNS Number : 7473E  Ocado Group PLC  15 March 2022

15th March 2022

Ocado Group plc

Announcement of partnership between Ocado Solutions and Auchan Retail Poland

We are pleased to announce the signing of an agreement between Ocado Group plc
("Ocado") and Auchan Retail ("Auchan") to partner with Ocado Solutions Limited
to develop Auchan Retail Poland's ("Auchan Poland") online business using the
Ocado Smart Platform ("OSP"). This agreement marks the second Auchan business
to partner with Ocado Solutions.

 

Auchan Poland and Ocado will initially build a Customer Fulfilment Centre
(CFC) to serve the Warsaw region, beginning in 2024, with additional CFCs to
be announced at future dates. Auchan Poland will also leverage Ocado's
In-Store Fulfilment (ISF) software across its hypermarkets nationwide to
enable more efficient picking from those stores. The agreement will cover both
its food and non-food business.

 

Auchan Poland will also benefit from the enhancements announced during Ocado's
Re:Imagined event in January, such as the latest generation 600 Series bot,
Automated Frameload and On-Grid Robotic Pick. Alongside physical fulfilment
solutions, Ocado will provide OSP's end-to-end software platform and a
comprehensive suite of engineering and support services to ensure the smooth
launch and ongoing development of its ecommerce operations.

 

The structure of fees agreed with Auchan Poland are similar to those agreed
with other international Ocado Solutions partners. Auchan Poland will pay
Ocado 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.

 

Ocado Group and Auchan Retail will continue to explore the potential to
further develop our relationship with partnerships in other geographies.

 

The agreement is mutually exclusive in Poland on the basis of Auchan Poland,
in the longer term, meeting market share targets or ordering an agreed amount
of CFC capacity per annum.

 

Tim Steiner, CEO of Ocado Group, said:

 

"We are pleased to bring a second Auchan business to our global platform, and
to welcome Auchan Poland to the club of innovative and forward-looking
retailers who are using the Ocado Smart Platform to power their online grocery
business."

 

"Today though, we recognise that this announcement comes at a very difficult
time for everyone in Poland, including many cherished colleagues working in
our technology development centres in Wrocław, Krakow and elsewhere. The
human tragedy unfolding in Ukraine, and the refugee crisis along its borders,
has shocked the world. My thoughts, and those of everyone at Ocado Group, are
with the Ukrainian people and everyone impacted by Russia's invasion of their
country."

Gérard Gallet, CEO of Auchan Retail Poland, said:

"In the current very difficult context we are faced with, our teams are very
committed to help Ukrainian refugees with the support of NGOs like Caritas and
Red Cross. We strongly call for peace in Ukraine. At the same time, we would
like to prepare our company for the future."

 

"The development of ecommerce services is our priority direction, which we
have been consistently pursuing for years, and recently especially
intensively. The partnership agreement with Ocado Solutions is the best proof
of our commitment. I am convinced that the introduction of such innovative and
forward-looking solutions will be a significant step for our company on the
way to achieving the leading position in the e-grocery market in Poland."

 

Expected financial impact for Ocado

Ocado expects this deal to create significant long term value to the business.
The impact of this transaction should be negligible on earnings in the current
financial year as no cash fees will be recognised in revenue until operations
commence. Ocado expects minimal additional capex in FY22 with the majority of
additional capex in the 18 months prior to the opening of the CFC.

Contacts

OCADO

●    Tim Steiner, Chief Executive Officer - Ocado Group, on 01707 228 000

●    Luke Jensen, Chief Executive Officer - Ocado Solutions, on 01707 228
000

●    Stephen Daintith, Chief Financial Officer, on 01707 228 000

●    David Shriver, Director of Communications, on 01707 228 000

●    Martin Robinson, Tulchan Communications on 020 7353 4200

 

Notes to editors

About Ocado Group

Ocado Group is a UK based technology company admitted to trading on the London
Stock Exchange (Ticker OCDO). It provides end-to-end online grocery fulfilment
solutions to some of the world's largest grocery retailers and holds a 50%
share of Ocado Retail Ltd in the UK in a Joint Venture with Marks &
Spencer. Ocado has spent two decades innovating for grocery online, investing
in a wide technology estate that includes robotics, AI & machine learning,
simulation, forecasting, and edge intelligence.

About Ocado Solutions

Ocado Solutions is responsible for Ocado's corporate partnerships, providing
the Ocado Smart Platform as a service to retailers around the world. OSP
comprises access to Ocado's physical infrastructure solutions, running highly
efficient warehouse operations for the single pick of products, together with
the entire end-to-end proprietary software applications required to operate a
world-class online grocery business. It is underpinned by Ocado's proven
expertise and experience as a dedicated online grocer in the UK.

Ocado Solutions is partnered with leading grocery retailers worldwide. These
include Aeon, Alcampo, Kroger, Sobeys, Morrisons, Groupe Casino, Coles
Supermarkets, ICA Group, Bon Preu Group, and Ocado Retail.

About Auchan Retail

Present in 13 countries, Auchan Retail operates all food retail formats
(hypermarket, supermarket, convenience, drive, digital) with 1985 points of
sale. Auchan Retail puts its customers at the heart of all its operations by
offering them a phygital shopping experience, which combines physical stores
with the digital ecosystem, and exclusive, quality products at the best price.
New generation merchants, players in the good, healthy and local; the 179,590
employees of Auchan Retail contribute, through a responsible approach with
customers, farmers and suppliers, to enable everyone to live better by eating
better.

About Auchan Retail Poland

 

Auchan Retail Polska is a large-scale retail network with French roots,
present in Poland since 1996, managing a network of hypermarkets on the Polish
market under the Auchan brand, supermarkets under the Auchan Supermarket
brand, convenience stores under the Easy Auchan brand, neighbourhood stores
under the Moje Auchan, as well as the e-commerce trade channel. The chain also
has franchise stores in the format of a supermarket and a hypermarket.

 

More information about the company can be found on the website
https://www.auchan.pl/pl.

Person responsible for arranging the release of this announcement:

Neill Abrams

Group General Counsel & Company Secretary

Ocado Group plc

Buildings One & Two Trident Place

Mosquito Way

Hatfield

Hertfordshire

AL10 9UL

Fax: +44 (0)1707 227997

email: company.secretary@ocado.com

Ocado Group plc LEI: 213800LO8F61YB8MBC74

Cautionary statement

Certain statements made in this announcement are forward-looking statements.
Such statements are based on current expectations and assumptions and are
subject to a number of risks and uncertainties that could cause actual events
or results to differ materially from any expected future events or results
expressed or implied in these forward-looking statements. Persons receiving
this announcement should not place undue reliance on forward-looking
statements. Unless otherwise required by applicable law, regulation or
accounting standard, Ocado does not undertake to update or revise any
forward-looking statements, whether as a result of new information, future
developments or otherwise.

 

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