Ocado Group has sealed a deal with Auchan Retail to develop its online Alcampo business in Spain using the Ocado Smart Platform.
Auchan Retail is one of the world’s largest grocery retailers, with 180,000 employees, €32 billion revenue and operations across 13 countries.
In Spain, it operates the Alcampo brand via a network of 310 stores, with revenue totalling €4.5bn in 2020.
In Spain, as in all major markets, there has been a significant acceleration in grocery eCommerce, with demand surging over the past 18 months as more consumers have turned to the online channel to deliver vital services during periods of rolling lockdowns and restrictions.
Under this agreement, Ocado and Alcampo will initially build a Customer Fulfilment Centre (CFC) to serve the Madrid region from 2024, with additional CFCs to be announced at future dates.
Alcampo will also leverage Ocado’s In-Store Fulfilment (ISF) software across its hypermarkets nationwide to enable more efficient picking from stores. The agreement will cover both Alcampo’s food and non-food business.
Alongside physical fulfilment solutions, Ocado will also provide Alcampo with 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 Alcampo are similar to those agreed with other international Ocado Solutions partners. Alcampo 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 and Auchan Retail will also explore the potential to extend this partnership into other geographies.
Tim Steiner, CEO of Ocado Group, said: “I’m delighted to welcome Auchan Retail to the innovative and forward-looking group of food retailers around the world who will be powering their ecommerce operations with the Ocado Smart Platform.
“The appetite for our unique end-to-end platform remains strong as retailers look to take advantage of the channel shift which is now redrawing the landscape of the global grocery market.
“Our partnership with Alcampo will bring the very best online grocery experience to customers in another major retail market, with proven and sustainable economics. We look forward to helping Alcampo change the way customers shop in Spain, for good.”
Américo Ribeiro, CEO of Alcampo, said: “This partnership aims to accelerate the company project that is committed to the good, the healthy and the local.
“This objective is based on the strength of the people who are part of the company and on the potential of the stores in each of the territories in which we are present.
“The alliance with Ocado, a technological leader, marks a turning point in the development of our phygital commerce, also contributing to continuous learning and innovation, cornerstones for the creation of sustainable value.”