Ocado's Secret European Deal Boosts Tech Business

Ocado has secured a new contract to build a large robotic warehouse for an unnamed, rapidly expanding European national retailer. This development marks a positive turn for Ocado's technology solutions business, which recently experienced a significant share price drop. The agreement involves the installation of Ocado's latest technology into a new automated Customer Fulfilment Centre (CFC), scheduled to be fully operational by the end of full-year 2028.

The retailer anticipates efficiently migrating its existing online order volumes to the new facility. The site is expected to launch with operations at just over half of its designed capacity. Ocado has indicated that this transaction will not have a material financial impact within the current financial year. The company's shares saw a 10% increase on Tuesday following the announcement.