Ocado cites warehouse capacity problems for profit fall

Hatfield, Hertfordshire, UK:  Sales at grocery home delivery company Ocado are being held back by capacity constraints at its automated warehouse in Hatfield, Hertfordshire, said Andrew Bracey, chief financial officer, Ocado.

It is spending £85m on improving the site and increasing capacity.  The first phase of investment, which is expected to be finished by the end of November, will enable it to handle up to 140,000 orders a week, up from about 110,000 today.

Ocado blames poor performance on constraints at its automated warehouse in Hatfield

A second phase, which will take another year, will enable it to process an additional 40,000 orders, taking the total to 180,000.

Ocado is also investing £210m in a second distribution centre, which will open in Warwickshire at the end of 2012.

Shares in Ocado tumbled 11% on Monday on news of reduced profits.  Bracey investment in the 12 weeks to 7 August returned customer service to its “previous high levels” but came at a price as it was “likely to lead to a slightly lower than expected increase in full-year margins”.

Sales were up 16.9% at £148.9m in the 12 weeks to 7 August, a figure that was short of the 17.2% in the second quarter and disappointed some analysts who had anticipated a pick-up.  The shares closed down 15.3p at 118.4p.

WORLD NEWS

Daimler Trucks goes electric

Stuttgart, Germany: Daimler Trucks plans a range of electric trucks for urban distribution and long-haul transport and has launched a concept vehicle to demonstrate the …

READ THE FULL STORY >

Krone boosts telematics services

Werlte, Germany: Trailer maker Krone and Shippeo, which makes automated tracking systems, have partnered to provide real-time estimated time of arrival (ETA) for Krone’s trailer …

READ THE FULL STORY >

European Cold Chain Conference set for Rotterdam in November

Rotterdam, Netherlands: The 23rd GCCA European Cold Chain Conference is scheduled for 23 – 25 November 2020 at the Hilton Rotterdam. The conference for temperature controlled professionals will see …

READ THE FULL STORY >

Polish pharma firm opens new warehouse

Głogów. Poland: Polish pharmaceutical company Arra Group has opened a new temperature-controlled warehouse in Poland near Poznań. The company says the warehouse is in a …

READ THE FULL STORY >

WHAT’S ON

  • Cold Chain Insight
    Cold Chain Insight into Energy, 16-20 November – the first of the new virtual insight series

Latest Tweets

This year's Cold Chain Leaders report (formerly Top 25) shows that @Culina_Group took the number one slot. Read what the chief execs say about 2020 plus tables on turnover, fleet size etc: bit.ly/3mYi3GF #logistics #SupplyChain #Coldchain pic.twitter.com/m4SMVG8DNp

© 2020 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