Ocado surpasses Landing French Client for intelligent technology



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Ocado Group Plc emerged after obtaining a technology license agreement with its first major customer outside the United Kingdom, the French supermarket operator Casino Guichard-Perrachon SA.

Casino will use Ocado's online grocery delivery system, which ranges from robots that select orders to software that directs them to buyers' homes, on its website Monoprix.fr, the companies said in a statement. Tuesday. They will spend at least two years building a warehouse to process orders for customers in Paris, Normandy and the Hauts de France region.

The company based in Hatfield, England, had spent at least four years looking for a large international partner, although in June it reached a license agreement with a small European shopkeeper who has not yet named. The company's shares rose as much as 28 percent in the first London operations, the largest since May 2013, having gained 7.3 percent on Monday.

The agreement is not very positive in a UK retail market that has deteriorated due to inflation driven by Brexit. Amazon.com Inc. Partnering with a grocer who generated 78.8 billion euros ($ 93.8 billion) in revenue last year lends credence to the vision of founder Tim Steiner of Ocado as a technology licensing company. The acquisition of Whole Foods Market Inc. by Amazon has accelerated the pace of change in the industry and increased interest in Ocado's technology, according to Steiner.

Why is this Ocado offer the complete purchase? : Gadfly

"This is the big news that Ocado investors have been waiting for," said Bryan Roberts, badyst at TCC Global. "The agreement makes a lot of sense given the size of Monoprix and the premium offer in Paris, where there is a clear appetite for home delivery."

Skeptical investors lick their wounds: short interest accounts for 17 percent of Ocado's outstanding shares, roughly seven times the average of FTSE 250 companies, according to Markit. That makes stocks susceptible to so-called short squeezes in which investors who have bet the stock can rush to buy the shares and limit the losses.

Quelle Surprise?

The agreement arrives with the market of supplies of France in tumult. E. Leclerc de Heridis SAS overtook Carrefour SA as the largest supermarket operator in the country this year, and Carrefour's new CEO, Alexandre Bompard, recently delayed the presentation of the company's restructuring strategy until next year. Online sales account for about 6 percent of the French market, according to Ocado's financial director, Duncan Tatton-Brown.

Most of that comes from the click and collection services known as "Drive," which have flourished for more than a decade, making the industry more advanced in that sense than EE. UU

"This agreement is a big surprise since it seems that Ocado previously arrived in France and could not find any partner since the French operators thought the Ocado solution was too expensive". wrote Philippe Suchet, an badyst at Natixis.

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