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Ocado has agreed to extend its partnership with French hypermarket giant Groupe Casino, including the creation of a logistics-based joint venture.

The pair struck an agreement to work together in November 2019 to develop Ocado Smart Platform (OSP) in France.

Today’s agreement, first announced under a Memorandum of Understanding in February 2022, will see Ocado expand its services to third party retailers in the country via a JV with Group Casino.

The JV will provide logistics services to OSP-powered customer fulfilment centres (CFCs) in France, which will be available to all grocery retailers

The agreement will also form a partnership for Ocado Group to integrate the French group’s Octopia’s marketplace platform into OSP and allow OSP partners around the world to launch their own marketplace offering.

Finally, it will see deployment by Groupe Casino of the OSP in-store fulfilment solution across its Monoprix stores

Luke Jensen, CEO of Ocado Solutions, said: “This is a great milestone for our relationship with Groupe Casino as we extend the partnership in a number of exciting directions.”

“Our partnership demonstrates what can be achieved when a major retailer introduces a world-class quality of service online, enabled by unique efficiencies, to French consumers. I’m excited that Ocado Group’s cutting-edge technologies are now available to all grocery retailers in France, with the new joint venture leveraging our combined expertise to provide key logistics services for future CFCs.”

Ocado shares are down 3.3% to 775p this morning.

Morning update

On the markets this morning, the FTSE 100 has dropped 1.6% to 7,196pts amid slower UK house price growth and global recession concerns.

Heavy fallers so far include Virgin Wines, down 5.6% to 85p, B&M European Value Retail, down 5.1% to 366.7p, Tate & Lyle, down 3.7% to 750.8p and WH Smith, down 3.5% to 1,394p.

The few risers include Just Eat, up 1.3% to 1,313.8p, McBride, up 0.9% to 17p and Hotel Chocolat, up 0.7% to 280p.

Yesterday in the City

The FTSE 100 closed down 0.2% yesterday to 7,312.3pts ending three days of recovery.

Household products manufacturer McBride gained 3.1% to 16.8p after securing a waiver of its June covenant tests until the end of September as it battles with soaring costs.

B&M European Value Retail was up 1.8% to 386.4p, despite sales continuing to slowdown as the discounter laps elevated figures from a year ago, with UK sales for the core B&M estate declined 9.1% on a like-for-like basis to £957m over the most recent quarter.

Other fallers included Glanbia, down 6.7% to €10.27, Virgin Wines, down 5.6% to 85p, Hotel Chocolat, down 2.5% to 278p and Bakkavor, down 2.2% to 96.8p.

Risers included Devro, up 1.9% to 184p and Paypoint, up 1.2% to 579p.