Groupe Casino’s newest partnership could give it a leg up in the online shopping war.
By joining forces with global online grocery retailer Ocado Group plc, the French supermarket giant is launching the Ocado Smart Platform (“OSP”) in France. The solution is described as a scalable, modular end-to-end solution that will be “a unique answer to the opportunities and challenges posed by shifting offline/online trends in grocery,” according to Groupe Casino.
The grocer will leverage Ocado's solution, which is supported by Ocado’s front-end web site functionality, last-mile routing management and big data. The partners are also constructing a new, state-of-the-art automated warehouse — a facility that will be managed by grids and robots. The Customer Fulfillment Center (CFC), which will also use Ocado’s proprietary mechanical handling equipment, will serve the Greater Paris area, and the Normandy and Hauts de France regions.
The building is expected to open within two years.
While the new platform will be used across all Groupe Casino’s banners, the Monoprix banner will be the first to launch the solution. This first wave of customers will be able to order from 50,000 food items.
Groupe Casino will pay Ocado certain upfront fees upon signing, and during the development phase. Ongoing fees will be linked to the grocer’s utilization of capacity within the CFC and service criteria.
Groupe Casino and Ocado are also evaluating how to develop of other CFCs close to other large urban areas, the company added.
“This agreement is a major leap in terms of quality: 50,000 food items will be offered in the first stage to customers in the Greater Paris area with precise and speedy delivery at home and through a platform which makes it achievable to do this profitably,” said Jean-Charles Naouri, CEO of Groupe Casino. “Groupe Casino is very proud to have sealed this deal with Ocado, which will further strengthen the quality of service available to its customers, at the core of its commitments for 120 years.”