UK-based online grocer Ocado has exchanged contracts to acquire a 2.4 acre distribution site in Avonmouth, Bristol.

The company announced today (26 October) that the site will be used as a distribution spoke through which it can expand its service to an additional one million homes and create up to 170 jobs.

Construction on the 40,000 square food shed will begin shortly, with the site set to open in March.

At peak capacity, the site will process 10,000 orders per week, delivering to the Cardiff, Bristol, Bath, Taunton and Cheltenham areas.

Ocado CFO Andrew Bracey said: “Our new distribution spoke site in the Bristol area will enable Ocado to service another one million households in Bath, Bristol, Cardiff and surrounding areas.