(Alliance News) - Online grocer Ocado Group PLC on Thursday said it will build a mini customer fulfilment centre in Bristol to support growth plans of Ocado Retail.
The Bristol warehouse will have a capacity for over 30,000 orders per week compared to 85,000 orders per week expected from Ocado's fifth customer fulfilment centre, which is currently being built at Purfleet, Essex.
The facility is being built in an existing warehouse, Ocado said, and is expected to go live at the end of 2020 or early 2021, bringing new capacity into operation significantly faster than for purpose-built standard-sized fulfilment centres.
The Bristol mini-centre, consisting of a 150,000 square feet warehouse, will be delivered by St Modwen Properties PLC.
"Despite its smaller size, we expect the Bristol mini-CFC to achieve productivity close to that in our standard facilities," Ocado said.
Ocado Retail is a joint venture between Ocado Group and Marks & Spencer Group PLC. It is responsible for ocado.com and two other retail brands: online pet store Fetch and Ocado Zoom, a new one-hour grocery service.
Ocado shares in London were up 0.9% at 1,177.50 pence each on Thursday morning. M&S shares were up 0.4% at 196.75p.
By Tapan Panchal; tapanpanchal@alliancenews.com
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