Ocado share price rises on new international partnership with Sweden's ICA to develop its online grocery business

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Ocado has announced a new international partnership in Sweden (Source: Getty)

Ocado has announced the latest in a string of international partnerships, naming Sweden's ICA for its new tie-up.

Shares picked up by more than five per cent in early trading on the news.

The online supermarket said it had signed a deal with the Swedish grocery retailer to use the Ocado smart platform. Ocado is partnering exclusively in Sweden with ICA to launch its end-to-end solution for online grocery services, include improved website functionality supported by Ocado's web shop.

ICA has around 1,300 stores across Sweden and a market share of around 36 per cent.

Read more: Ocado shares surge on Canada partnership with Sobeys

Luke Jensen, chief executive of Ocado Solutions, said:

We are excited and proud to be partnering with another of Europe’s leading grocery retailers. ICA has a strong track record of growth and innovation and our Smart Platform will give the ICA-retailers the opportunity to provide their customers with new levels of service, convenience and value. Our flexible, scalable and modular solution is uniquely positioned to address a fresh set of challenges and allow ICA deliver its ambitions for online.

Per Strömberg, chief executive of ICA Group, said: “We are now laying the foundation for the next generation ecommerce offering, and we are putting an important piece of the puzzle in place to realise our digital ambitions for all of ICA Group. Today we have the industry’s most efficient processes for physical shopping, and through this agreement we can create the most efficient solutions also for ecommerce."

The tie-up comes after Ocado revealed it had inked a deal with Sobeys in Canada in January, and an agreement with French firm Groupe Casino back in November.

The former involves Ocado helping launch Sobeys' online grocery service, and include investment by Ocado installing its grid and robots, while Ocado is helping Groupe Casino develop its technology platform in France.

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