Ocado to open new Oxford distribution depot

Ocado has announced that it is adding an Oxford depot to its regional distribution network, which should ease supply problems of the online retailer and create up to 170 jobs.

The brand previously reported that it was limited in its capacity to keep up with the increase in demand.

The 43,000sq ft site at White Horse Business Park in Stanford-in-the-Vale will relieve pressure on the existing Weybridge and Coventry 'spokes' as well as its main distribution site at Hatfield. It is the third 'spoke' to open in 2011, following Bristol and Wimbledon. When it opens in November, it will be able to facilitate 10,000 orders per week, operating 65 delivery vans at peak times.

Chief executive Tim Steiner said: We are fully focused on increasing our capacity to meet customer demand, and to drive further strong growth and first-class service. This new distribution spoke site, which will be our third this year when it opens in November, clearly demonstrates that. We are extremely pleased to be extending the Ocado service and creating more local jobs.

Ocado reported pre-tax profits of 200,000 in the first six months of this year, with sales rising almost 21% to 296.7m for the 24 weeks to 15 May. However, the share price tumbled as analysts remained cautious about the companys ability to keep up with demand and well as the dangers from a competitive market.

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