Ocado announces new US headquarters as shares soar

Ocado has announced plans to open an office in Washington D.C. for its Ocado Solutions technology, as its shares soar off the back of healthy financial results.

The online grocery retailer said that it is in the process of establishing a permanent base in the Washington D.C. area, and in the mean time will operate from its headquarters in Tyson’s, Virginia.

“We selected the DC area for its great connections to cities across the U.S. and Canada, as well as for its strong technology and engineering talent pools,” Ocado Solutions’ chief executive Luke Jensen said.

In 2018, Ocado signed deals with leading retailers on both sides of the border, including Kroger in the US and Sobeys in Canada.

This latest announcement is set to see it strengthen its presence in both markets, and it is already planning to open 20 high-tech automated “customer fulfilment centres” in the US and more in Canada over the next few years as part of its partnerships.

READ MORE: Ocado officially launched it 60-minute Zoom delivery service

Kroger’s chief executive Rodney McMullen added: “We are excited to partner with Ocado, one of the most innovative, advanced companies in the world, to redefine the grocery shopping experience for customers along the East Coast.

“We are incredibly excited to introduce customer fulfillment centres in this region to deliver on our Restock Kroger vision to serve America through food inspiration and uplift.”

Ocado’s share prices jumped 4.6 per cent this morning, following news that its revenues rose 11.2 per cent in its first quarter to £404 million, despite a fire destroying its flagship automated warehouse during the quarter.

Its average order per week also rose 11.3 per cent to 314,000, though average order size dipped slightly by 0.2 per cent to £110.24.

Late last month Ocado revealed that it had sold half of its UK retail division to Marks & Spencer in a deal worth £750 million.

Ocado chief executive Tim Steiner said: “With the joint venture signed with M&S at the end of February, Ocado Retail has never been in a stronger position to lead channel shift while constantly setting the bar for excellence in online grocery in the UK.”

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