Thursday 28 November 2019 8:27 am

Ocado to build sixth warehouse as online grocer accelerates growth

Online supermarket Ocado has announced it will build a sixth warehouse in the UK as it ramps up its growth plans.

The new warehouse in Bristol will be the company’s first “mini” customer fulfilment centre, with the capacity for more than 30,000 orders per week compared to the 85,000 orders per week expected at the site currently under construction in Purfleet. 

Read more: Debate: Will M&S’s deal with Ocado turn its fortunes aroun

The distribution hub, which is being built in an existing warehouse, is expected to be completed by the end of next year or early 2021 and is designed to allow customers in Bristol and the surrounding area to benefit from a same-day delivery service. 

The Bristol fulfilment centre, which will be 150,000 sq ft, is being constructed by St Modwen and is expected to support approximately 815 jobs in the local area. 

Ocado Group chief executive Tim Steiner said: “The Ocado Smart Platform is constantly evolving as we innovate to adapt to changing customer needs. 

“We can now deliver the best customer experience across a whole range of customer missions, through customer fulfilment centres (CFCs), mini-CFCs, and micro fulfilment centres. 

“Ocado’s technology is dynamic and constantly improving, delivered through tried and tested solutions with proven and attractive economics. 

“Our mission is to deliver the future of online shopping today, and we believe we are succeeding.”

Read more: Ocado sales growth accelerates after Andover fire recovery

The latest data from market research firm Kantar, for the 12 weeks to 3 November, showed that Ocado was the fastest growing supermarket with sales up 13.5 per cent, outpacing all of the big four grocers and the German discounters. 

In July the company reported that a devastating fire at one of its flagship warehouses in Andover had cost the firm £98.5.m.

Main image credit: Getty