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Ocado, Groupe Casino Team for Grocery Smart Platform

November 28, 2017

On-line grocery retailer Ocado Group and Groupe Casino have teamed to develop the Ocado Smart Platform ("OSP"). The scalable, modular end-to-end solution provided by the OSP is a unique answer to the opportunities and challenges posed by shifting offline/online trends in grocery.

This highly commercial formula will be achieved through access to Ocado's end-to-end solution, including the construction of its latest generation, state-of-the-art automated warehouse (for which Ocado will invest to install its grid and its robots), Ocado's best-in-class front-end web site functionality, last-mile routing management and big data, real time implementation.

OSP provides multiple advantages to retailers wishing to operate online including:

•based on proven systems and infrastructure which Ocado uses in its own business

•both modular (size flexible) and scalable (can start smaller and scale up on short lead times)

•significant operational cost benefits

•supports a large range

•entire seamless proprietary software provision updated alongside Ocado's own development programme, providing "best in class" service for customers

•flexible agreement terms with low entry cost, ongoing fees linked to installed capacity.

Groupe Casino's banners will benefit from this innovative grocery e-commerce platform, firstly Monoprix.fr, which will provide its customers with the largest assortment of food items at the best levels of services and costs.

The agreement sets out plans for the immediate initiation of the development of a Customer Fulfilment Centre ("CFC") using Ocado's proprietary Mechanical Handling Equipment ("MHE") to serve the Greater Paris area, the Normandie and Hauts de France Regions.The build and launch is expected to take at least two years.

In consideration of the investments made by Ocado, of maintenance and of provision of technology, Groupe Casino will pay Ocado certain upfront fees upon signing,and during the development phase, then ongoing fees linked to its utilisation of capacity within the CFC and service criteria.

In addition to the initial CFC, Groupe Casino and Ocado will consider further development of other CFCs close to other large urban areas.

Jean-Charles Naouri, CEO of Groupe Casino, said: "Groupe Casino is pleased to announce the agreement with Ocado Group which will allow it to develop an integrated customer and logistics platform, considered the best in the market.

"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. 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."

Tim Steiner, CEO of Ocado, said: "We are delighted that Groupe Casino has decided to partner with Ocado Solutions to grow and develop its online food business. We believe that the scalable, modular end-to-end solutions provided by the Ocado Smart Platform, will allow retailers such as Groupe Casino to build their online grocery offer in a way that is profitable and sustainable, creating value for customers, suppliers and shareholders.

"We continue to make investments to commercialise our proprietary platform and expect this deal to be one of many successful collaborations with leading retailers to use it the world over."

Luke Jensen, CEO Ocado Solutions, said: "Groupe Casino is a successful multi-format, multi-banner and multi-channel business with top-three market positions in all the countries in which it trades. Its decision to adopt the Ocado Smart Platform to build and drive its online food business in France gives it a unique, innovative, and world-leading solution to the challenge of delivering groceries profitably online. We look forward to working closely with Groupe Casino going forward".

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