ROBOT WAREHOUSE GOES UP IN FLAMES
Ocado fears ‘sales reduction’ as fire knocks £450million off value
A FIRE has ripped through Ocado’s robot warehouse, destroying the “majority of the building” and bringing deliveries to a halt.
About 200 firefighters and 20 engines tackled the blaze at the online supermarket’s depot, where machines select items for customers’ orders.
And last night, £450million had been wiped off the company’s market value.
Locals near the facility in Andover, Hants, were told to keep their windows and doors shut against the smoke.
The huge fire caused “substantial damage to the majority of the building and its contents,” the online firm said.
Ocado said yesterday the blaze was under control, but a large part of the building’s roof has collapsed. One local tweeted: “Just streets away – the noise, heat, smell and light pouring from the warehouse is frighteningly real.”
The automated depot uses robots that travel along a grid and pick out items for customers’ orders. Deliveries from the site, one of four in the UK, are suspended. The firm said: “There will be a reduction in sales growth until we can increase capacity elsewhere.”
Retail analyst James Lockyer at City firm Peel Hunt, said it could be shut for “at least 12 months”.
Ocado’s share price dipped more than 6% yesterday as bosses warned sales would be hit.
The fire started around 3am on Tuesday, the same day Ocado’s full-year results revealed £44million in losses.
Hampshire Fire and Rescue Service said four firefighters were treated for smoke inhalation. Investigations are ongoing into the cause of the fire, which started in a “packets and tins” area.
The facility, opened in 2016, handles 30,000 grocery deliveries a week, around 10% of Ocado’s total. The firm, worth £7billion, said the cost of the damage would be covered by insurance.