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UK-based Online grocer Ocado has announced its fifth international deal, with US grocery retailer Kroger. Under the terms of the agreement, Ocado's technology will be used in the US exclusively by Kroger, with the US firm also increasing its investment in the company by five percent. This will bring its investment in Ocado to more than six percent. 

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Online retailer Ocado has introduced an improved list functionality called Meal & Lists.

The initiative makes it easier for shoppers to build their baskets.

 

Source: IGD Research

Improving the shopper experience

Ocado research has shown that customers typically have a small repertoire of meals that they shop regularly.

The Meal & Lists function allows shoppers to organise their shopping cart into meal lists and save them for future shops. This encourages shoppers to shop regular meals rather than ingredients, quickening the order process.

The initiative also has the potential to help reduce waste. Meal lists can help shoppers with meal planning, ensuring every ingredient is used.


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Ocado has announced a partnership with ICA to develop its online grocery business in Sweden.

This is the third international partnership for the Ocado Smart Platform in six months.

Exclusive partnership

The Swedish market leader will use Ocado's e-commerce platform and technology for its automated picking warehouses. ICA hopes this will improve its customer offering and boost efficiency.

ICA will invest SEK 600m (€56.6m) in the next four years in return for Ocado's expertise in developing online ordering applications and delivery technology, as well as constructing an automated warehouse. The first customer fulfilment centre (CFC) will be built in the Greater Stockholm area in 2021.

The partnership provides exclusivity in Sweden and the Baltic countries provided that ICA meets growth targets.

More centralised solution

Until now, ICA's online grocery offer has been picked in-store, with around 208 of its 1,300 stores offering an online grocery service. The partnership with Ocado represents a move to a more centralised solution, although Ocado will create separate mico-sites for each of the independent retailers, which can charge different prices. 

Ocado's growing international presence

Ocado's role as a provider of retail technology is continuing to gain momentum. The ICA partnership is Ocado's third international deal in six months, following its partnership with Canadian food retailer Sobeys in January and its tie-up with French supermarket Groupe Casino late last year. The retailer also announced an agreement with an unnamed partner last June, making ICA its fourth international partner.

Ocado's shares rose seven per cent after the company forecasted that the ICA deal would create 'significant long term value'.

Luke Jensen, CEO of Ocado Solutions, said “We are excited and proud to be partnering with another of Europe’s leading grocery retailers. ICA has a strong track record of growth and innovation and our Smart Platform will give the ICA-retailers the opportunity to provide their customers with new levels of service, convenience and value. Our flexible, scalable modular solution is uniquely positioned to meet a fresh set of challenges and allow ICA to deliver its ambitions for online”

 

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The Future of Online Retail is IGD’s most technologically advanced two-day event that will show you how to make more of the most revolutionary shopping channel of our time.

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The latest data from Kantar Worldpanel shows that in the 12 weeks to 22 April 2018, the GB grocery market grew by 2.0%, a slowdown on the 2.5% seen in the previous period.  As well as the effect of mostly disappointing spring weather, growth is being progressively being impacted by slowing inflation, which fell to 2.1% in the 12 weeks.

Discounter growth below 10%

While still performing well ahead of the market average, Aldi and Lidl saw their growth slowing further, with both now running at under 10% for the first time in some while.  The slowdown at Aldi was especially pronounced, as its market outperformance fell to 'just' 5.7 percentage points versus 8.2 in the April data.  Lidl's relative performance was more resilient with growth of 9.1% keeping it 7.1 percentage points ahead of the market.

 Asda and Sainsbury's remain relative underperformers

Against the background of a proposed merger of the two businesses, Asda and Sainsbury's saw growth of 1.4% and 0.2% respectively, putting them someway behind their 'leading four' competitors Tesco and Morrisons.  These both achieved market outperformance with growth above 2.0%.  As measured by this latest data Asda combined with Sainsbury's would have a total market share of 31.4%, almost four percentage points ahead of Tesco on 27.6%.

Ocado sees significant acceleration

With nearly all other competitors slowing in line with the direction of the market, online retailer Ocado proved a striking exception, with its growth running ahead to reach 12.7%, making it notably the fastest in the sector.

 

12 weeks to 23 April 2017 (% share)

12 weeks to 22 April 2018 (% share)

Sales growth (Y-o-Y %)

Tesco 27.6 27.6 2.1
Sainsbury's 16.2 15.9 0.2
Asda 15.6 15.5 1.4
Morrisons 10.5 10.5 2.2
Aldi 6.9 7.3 7.7
Co-op 6.1 6.0 -0.4
Lidl 5.0 5.4 9.1
Waitrose 5.2 5.1 0.2
Iceland 2.1 2.1 0.2
Ocado 1.1 1.2 12.7
Other multiples 1.8 1.8 0.5
Total symbols & independents 2.0 1.8 -8.3
       

Source: Kantar Worldpanel

 

IGD Tesco Business Update 2018


 

23 May, London

 

Hear from Dave Lewis, Group CEO, Charles Wilson, UK & Ireland CEO, Jason Tarry, Chief Product Officer, and Alessandra Bellini, Chief Customer Officer, along with their leadership team who will provide a business and commercial update.


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Presentations

10/05/2018

An essential summary of trading priorities, latest developments, and other key commercial insights for Ocado.

19/02/2018
We take a look at the trends set to shape retailing in Western Europe in the year ahead.
16/02/2018
We look at Ocado strategy, its performance and the opportunities for manufacturers.
View all presentations

Key presentations

We look at Ocado strategy, its performance and the opportunities for manufacturers.

This in-depth guide to the United Kingdom explores the key trends in grocery retail and the growth strategies of the leading retailers in the country.

An essential summary of trading priorities, latest developments, and other key commercial insights for Ocado.

We've developed a single, universal methodology for calculating food and consumer goods retail data, supported by our programme of primary and secondary research. This makes Retail Analysis the most reliable and robust source available for data of this type. 

In this one-day workshop, you'll discover the key opportunities of online retailing and how to activate them as part of your overall category strategy.

We've grouped all the latest European retail news, store visits, retailer profiles and downloadable presentations together in one place.