Ocado CFC to be replaced with state of the art unit

Ocado has announced plans to replace the Andover customer fulfilment centre (CFC) that was destroyed in February.

In a trading statement chief executive Tim Steiner said: “The fire has been a setback, but it will be only a temporary one. Over the last few weeks, our teams have been working hard to minimise any disruption to our customers and we will build a state-of-the-art replacement facility that reflects all the innovations and improvements we have made since Andover opened in November 2016.”

The company said that a thorough examination of the causes of the Andover fore was currently being undertaken. “Our initial assessment of the reasons for the fire gives us confidence that, going forward, there are no significant implications for the risk profile of the assets or the viability of our model and therefore for either Ocado Retail or Ocado Group.

“All efforts are being made currently to minimise the disruption to consumers including setting up a temporary spoke in Andover.  We have plans that we are working on to provide more CFC capacity which include growing our capacity in Erith faster than envisaged.”

For the 13 weeks to 3rd March, Ocado saw revenue rise 11.2 per cent to £404 million, although average order size was marginally down at £110.24.

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