Ocado Andover warehouse fire cost over £100m

Andover, Hampshire, UK: Online delivery firm Ocado says the fire that destroyed its Andover warehouse in February cost £110m.

The cost of the fire, after insurance payments, drove it to £142.8m half-year loss on sales of £882m in the six months to 2 June .

Closure of the site – which had provided about a tenth of the company’s delivery capacity – knocked 2% off its 9.7% retail sales growth rate during the half.

Ocado has signed a deal with its client Morrisons, which allows the delivery firm to take back 30% of the space for two years at its new centre in Erith, south-east London.

Andover is being rebuilt and Ocado also plans to build a new warehouse in Purfleet, Essex.

Tim Steiner, chief executive, Ocado, said the business was also looking for other ways to use its software and robotics expertise. “In the last six months the centre of gravity at Ocado has shifted,” he said. Deals have been signed with Coles of Austrialia and Sobeys in Canada to develop deliveries.
Earlier this year, the company clinched an agreement with Marks and Spencer to give the retailer a home delivery service for the first time.

The fire in Andover – which stretched over four days – will cause £15m of disruption in the remaining six months of the financial year.
The company also said that its financial performance would be knocked by £10m of share-based bonus payouts to its management.

The warehouse in Andover is being rebuilt and construction of another facility in Purfleet, Essex is to begin shortly.

WORLD NEWS

K Group tests Thermo King E-200 for Finnish grocery delivery

Helsinki, Finland: K Group has tested Thermo King’s electric E-200 fridge on an electric-powered MAN eTGE van on food delivery in Finland.  K Group is …

READ THE FULL STORY >

Krone Cool Liner celebrates 25 years

Werlte, Germany: Krone launched its first refrigerated trailer in 1996 and to mark the 25th anniversary a special Edition of the trailer is being launched. …

READ THE FULL STORY >

Bolloré Logistics to open new pharma unit

Roissy, France: Bolloré Logistics is to handle healthcare products at its Roissy hub with an 800m2 extension of a pharmaceutical unit. This will give Bolloré …

READ THE FULL STORY >

New coldstore for Brussels Airport

Brussels, Belgium: Brussels Airport has opened refrigerated storage for Kuehne+Nagel, Worldwide Flight Services and Expeditors. Kuehne+Nagel is expanding its activities at Brussels Airport for handling …

READ THE FULL STORY >

WHAT’S ON

Latest Tweets

Hultsteins appoints Longhurst Refrigeration as its UK aftersales service partner: bit.ly/3x65xK8 pic.twitter.com/pm8lz8b0iD

© 2021 Global Cold Chain News | Terms of use | Privacy Policy
Commercial Transport Publishing Limited, registered in England and Wales, Company No: 6453302. Registered Office: 6 Corunna Court, Corunna Road, Warwick CV34 5HQ