UK online retailer Ocado plans to use the opening of a second distribution centre to expand the business and push further into the north of the country.
The firm today (12 October) announced it had acquired a site for the construction of a second “customer fulfilment centre” (CFC) in Dordon, north Warwickshire. It is expected that the facility will generate around 2,000 jobs at peak capacity.
A spokesperson for Ocado declined to give specific detail on geographical areas for expansion but said the new centre will allow “further, significant expansion”.
“It will also allow us to fully develop delivery operations within our existing Northern and Midlands geography, where we are currently experiencing fast growth,” the spokesperson said, adding that the facility will free up capacity for the existing Hatfield centre to serve more of the south west, east, south Wales and East Anglia.
“It will also allow it to grow quicker in the northern geography and push further north, over time, into areas including Tyneside and Durham,” he added.
Ocado currently covers around 66% of UK postcodes, it claims, with 50% of its business within the M25 region and 50% covering regions from the South Coast up to Leeds, Manchester, Hull and Liverpool.
“The Birch Coppice site was considered the best option for locating our second centre owing to its quality, its excellent transport links for both delivery and supply, and the opportunities within the local labour market,” the spokesperson said. “It is a key part of Ocado’s plans to expand the business even further, and develop our service in the Midlands and North.”
The firm said the centre will, like the Hatfield facility, have its own van and HGV fleet and will work alongside Ocado’s existing regional distribution centre.