Ocado rock­ets af­ter se­cur­ing Ja­panese deal

Scottish Daily Mail - - CITY & FINANCE - by Tom Witherow

OCaDO shares jumped nearly 10pc af­ter it struck a deal with a Ja­panese su­per­mar­ket, boost­ing founder Tim Steiner’s for­tune by more than £32m.

Us­ing its au­to­mated pick­ing tech­nol­ogy, the Bri­tish firm will launch an on­line de­liv­ery busi­ness with aeon.

The news sent Ocado shares up 9.7p, or 117p, to 1325p, adding £817m to the value of the com­pany. The rise also took the value of Steiner’s stake to £365.7m.

aeon, which has 21,000 stores in 14 coun­tries and as many as 100m cus­tomers, hopes on­line sales will reach £4bn by 2030 thanks to the deal.

Ocado will open its first ware­house for aeon in 2023.

The com­pany, which is bet­ter known for its gro­cery de­liv­ery busi­ness in the UK, will hire al­most 400 devel­op­ers in the UK on the back of the deal.

There will also be more head of­fice roles in the UK and jobs cre­ated in the places it op­er­ates. aeon al­ready em­ploys 580,000 peo­ple.

Ocado did not say how much the deal is worth, but one ef­fect is that its op­er­at­ing costs are set to rise by £25m next year. Fi­nance di­rec­tor Dun­can Tat­ton-Brown said it could build as many as four new ware­houses by 2025, up to 11 by 2030 and 20 by 2035.

Steiner, who is also chief ex­ec­u­tive, said: ‘I am de­lighted to wel­come an­other ex­tra­or­di­nary re­tailer, and the first from asia, to the in­ter­na­tional club of gro­cers pow­er­ing their ecom­merce op­er­a­tions with Ocado.’

Ocado has signed sim­i­lar part­ner­ships with mor­risons in the UK, Kroger in amer­ica and Groupe Casino in France, and will also launch a joint ven­ture with marks & Spencer in au­tumn 2020. Joe Healey, in­vest­ment re­search an­a­lyst at The Share Cen­tre, said: ‘This deal looks set to con­tinue the march of Ocado.’

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.