Ocado has set out details of its long-awaited second distribution centre.
The company announced this morning that it had exchanged contracts to buy a 35-acre site on a business park for £18m. The giant new £210m warehouse and distribution centre in North Warwickshire will double the online grocer’s potential capacity and create 2,000 new jobs.
Construction on the DC will be completed by the end of 2012. The site will have an initial capacity for 120,000 orders a week but Ocado estimates that could eventually rise to 180,000.
“Ocado is growing rapidly across the country and this location ensures we will have capacity to provide more customers with the leading online grocery offering,” said chief executive Tim Steiner.
Commenting on the development, business minister Mark Prisk said: "This is great news for jobs and for the economy as a whole. Ocado is a classic example of how a well-run small business can grow and become a real leader in its market."
Ocado floated on the stock market in July in a bid to raise funds to expand the business. Despite last month unveiling record sales, its share price has fallen far below the initial target of 275p on flotation.
Ocado sales surge but share price slips again (7 September 2010)
Ocado hails passing 100,000 order mark (22 May 2010)
Ocado to use flotation funds for new depots (13 February 2010)