Ocado Announces Partnership with Denmark's Nemlig for Automated Grocery Warehouse
Ocado and Nemlig Collaboration: Key Details and Market Impact
Partnership Confirmation and Warehouse Development
LONDON, Aug 20 (Reuters) - British technology and online supermarket group Ocado on Thursday confirmed Danish online grocer nemlig as the previously unnamed European retailer announced as its latest partner last month.
Under the partnership, nemlig and Ocado will build a new robotic warehouse, or Customer Fulfilment Centre (CFC), as Ocado calls them, near Copenhagen.
Market Reaction and Stock Performance
Ocado shares jumped over 12% on July 21 when the deal was announced as it provided a boost to the group's embattled technology solutions business.
The stock was up 2% on Thursday, paring losses over the past 12 months to 32%.
Denmark's Largest Pure-Play Online Grocer
DENMARK'S LARGEST PURE-PLAY ONLINE GROCER
Ocado said nemlig is Denmark’s largest pure-play online supermarket, with sales of DKK 3.3 billion ($516.31 million) in 2025/26.
Future Plans for Nemlig and Ocado
Nemlig plans to transfer its existing order volumes into the new CFC when it goes live in 2028 but will continue to operate its existing webshop and manage last-mile delivery to its customers.
Challenges and Strategic Repositioning
North American Partnerships: Kroger and Sobeys
Ocado is trying to reposition itself after two key North American partners scaled back their tie-up.
Kroger in the U.S. and Sobeys in Canada opted to close robotic warehouses they ran with Ocado, blaming weaker-than-expected demand.
Business Model Viability Concerns
Their retreat raised fresh questions over the viability of Ocado's business model, particularly for grocery partners whose customers are spread beyond dense urban areas.
Additional Information
($1 = 6.3915 Danish crowns)
(Reporting by James Davey; Editing by Muvija M)
