French firm Groupe Casino has signed an agreement to use UK supermarket retailer Ocado Group’s e-commerce technology to develop its online food business.

Under the terms of the agreement, Groupe Casino will use the Ocado Smart Platform (OSP) for the construction of its automated warehouse in France.

The company will have access to Ocado’s front-end web site functionality, routing management and big data, real-time implementation.

“This agreement is a major leap in terms of quality.”

The agreement includes the development of a customer fulfilment centre (CFC) using Ocado’s mechanical handling equipment (MHE) to cater to the Greater Paris area, as well as the Normandie and Hauts de France Regions.

Groupe Casino CEO Jean-Charles Naouri said: “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.”

The grocery e-commerce platform is expected to enable the company’s Monoprix brand to provide its customers with an increased assortment of food items.

Construction of the warehouse is expected to take at least two years.

Ocado Group CEO Tim Steiner said: “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.”

Operating 12,960 stores worldwide, Groupe Casino will initially make upfront payments to Ocado for maintenance services and provision of technology.

Thereafter, Ocado will receive service-related payments on an ongoing basis.