LONDON (dpa-AFX) - Technology company Ocado Group plc (OCDO.L) Tuesday announced an agreement to develop Lotte Shopping's online business in South Korea using the Ocado Smart Platform.
The deal holds negligible impact on earnings in the current financial year as no cash fees will be recognised in revenue until operations commence, the company said. However, Ocado sees significant long term value for the deal.
Ocado Smart Platform or OSP is an end-to-end eCommerce, fulfilment and logistics platform for online grocery retailers.
South Korean business conglomerate, Lotte Group engages in diverse industries including retail, food, hotels and chemicals, with annual revenue of 45 billion pounds.
As per the deal, Ocado and Lotte will develop a network of Customer Fulfilment Centres (CFCs) across the market, leveraging the end-to-end capabilities of the Ocado Smart Platform. Ocado's in-store fulfilment solution will also be rolled out across Lotte's store estate, Ocado said
Ocado Group expects minimum additional capex in fiscal 2023 with the majority of additional capex in the 12 months prior to the opening of CFCs. The first opening is expected in 2025.
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