May 2018 saw Ocado sign a partnership agreement with Sweden’s leading grocer - ICA Group (“ICA”) - to launch a home delivery e-commerce service using Ocado Smart Platform (“OSP”). ICA’s 2017 revenue of SEK 106.5bn represents around 36% market share and was generated from 1,300 stores operated using a co-operative business model.
With this agreement, Ocado has tailored its product offering to accommodate ICA’s business model which is based upon independent retailer-owned stores. This demonstrates the agility of the platform and embodies Ocado’s commitment to work collaboratively with our partners to meet the unique challenges they face.
Anders Svensson, CEO of ICA Sweden and Deputy CEO of ICA Group, said:
“ Our cooperation with Ocado entails that they will adapt their world-leading ecommerce platform to ICA’s business model with independent retailers. At the same time, we will benefit from the fact that Ocado are continuously developing the platform for themselves and other leading grocery retailers around the world. An automated ecommerce warehouse will enable us to offer customers a wider product range online and better deliveries while at the same time streamlining ICA’s logistics flows. ”
Each independent ICA retailer will have its own dedicated webshop and each retailer will be able to make autonomous decisions on its product range and pricing. It also means each ICA retailer will retain complete control of all its customer and business data. The agreement stipulates that ICA will have exclusive adoption of the Ocado Smart Platform in Sweden, provided it meets pre-agreed growth targets.
ICA and Ocado will together develop an automated CFC which will serve the Greater Stockholm area. The build and launch is expected to take about three years and both companies are open to the possibility of building further CFCs elsewhere in Sweden. The agreement also involves ICA transitioning its current store pick operations to Ocado Smart Platform.