Ocado has revealed plans to open a new regional depot near Oxford to tackle capacity problems at the online grocer.

Due to open in November this year, the 43,000 sq ft warehouse will be able to process 10,000 orders a week. The new site will take pressure off existing sites in Weybridge and Coventry, as well as the central depot in Hatfield.

“We are fully focussed on increasing our capacity to meet customer demand,” said Ocado chief executive Tim Steiner. “This new distribution spoke site clearly demonstrates that.”

Ocado revealed at the end of June that capacity constraints had limited its ability to grow in the six months to 15 May. Gross sales increased 20.8% to £296.7m, but still failed to match market expectations – sending the company stock on a downward path.

The Oxford depot will be Ocado’s tenth regional hub when it opens later this year – and the third to open in 2011.

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