Ocado has secured a deal to build a large robotic warehouse for an ‘unnamed, fast-growing’ European retailer.

The group will install its latest automation systems at the new customer fulfilment centre, which is due to go live during Ocado’s 2028 financial year.

The site will use Ocado’s Re technology suite, including its 600 Series robots, On-Grid Robotic Pick system and fully automated freezer technology.

Ocado said the retailer plans to quickly transfer its existing online order volumes into the warehouse, which is expected to open with utilisation at just over half of its total design capacity.

The transaction is not expected to have a material impact on Ocado’s financial performance during its current financial year.

Ocado chief executive Tim Steiner said: “Together with our agreement with Asda earlier this year, this partnership highlights the growing demand for our solutions across the breadth of our technology offering.”

The new partnership follows Ocado’s technology deal with Asda in May, which will see the supermarket use its automation systems to improve the fulfilment of online orders from stores.

Ocado shares jumped more than 12 per cent following the announcement, having fallen to a 13-year low the previous week after its first-half results disappointed investors.

Despite the rise, the company’s shares remain 37 per cent lower than they were a year ago.

The deal provides a boost to Ocado’s technology solutions division as it hopes to recover from setbacks involving two of its largest North American partners.

Kroger and Sobeys have closed a number of robotic fulfilment centres operated using Ocado technology after online demand fell below expectations.

The closures raised concerns about the viability of Ocado’s large, standalone warehouse model, particularly in markets where shoppers are spread across less densely populated areas.

Ocado has since expanded its focus to include smaller automation systems that allow retailers to fulfil ecommerce orders from their existing store estates.

The expiry of exclusivity agreements across several international markets has also allowed the group to pursue partnerships with additional retailers.

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