Ocado shares leap as the online supermarket firm signs multi-million pound deal with Japanese retail giant
- Ocado shares rose 10% to £13.60 after the partnership was announced
- The move gives Ocado access to one of the world’s largest markets
- Ocado plans to hire just under 400 software developers to deliver the deal
Ocado’s share price rocketed 10 per cent in early trading on Friday after the online supermarket signed a multi-million pound deal with one of Japan’s biggest retailers, Aeon.
Ocado will build a national fulfillment network for Aeon, through which it hopes to deliver to the whole of the Japanese market.
Aeon expects sales to reach JPY600billion (£4.25billion) by 2030, and grow to approximately JPY1trillion (£7billion) by 2035.
The deal with Aeon represents the latest international contract for supermarket Ocado
Ocado, which is known for its robotic food pickers, will also build delivery warehouses for Aeon.
The Japanese giant has over 580,000 staff and approximately 100 million customers. It operates over 21,000 stores across various businesses, with operations in 14 countries.
Ocado did not reveal the value of the deal but said it will hire just under 400 new developers who will be based in the UK.
The new contract comes after a fruitful couple of years for the stock market darling.
It signed a deal to provide its grocery tech to American giant Kroger in 2018 and entered into a joint venture with Marks and Spencer earlier this year.
‘Ocado has chosen the biggest day in the Online Retail calendar (aka Black Friday) to announce a big new licensing deal with the Japanese supermarket chain Aeon and, given that Japan must have plenty of rival automated robotic warehouse providers, this is quite a coup for the business,’ said independent retail analyst Nick Bubb.
Ocado Solutions boss said: ‘Japan is one of the most high tech economies in the world’
Shares jumped 10 per cent to £13.60 after this latest contract was announced recovering fully from a slump at the beginning of November.
Neil Wilson from Markets.com said: ‘The deal has settled investors’ nerves which had been showing signs of fraying on a lack of new partnerships and rumours of trouble with its Kroger marriage.
‘Shares had been selling off steadily for weeks but with this announcement Tim Steiner has again delivered.’
Ocado Solutions boss Luke Jensen said: ‘Japan is one of the most high tech economies in the world.
‘It is also a unique and exciting market for grocery e-commerce, with sales primed for huge growth in the coming years.’