Ocado to launch mini-CFC in Bristol

Date : 29 November 2019

Ocado Retail has announced plans to open a sixth Customer Fulfilment Centre (CFC) in Bristol.

First mini-CFC

Ocado Retail will open its first mini-CFC, located in Bristol at the end of 2020 or into early 2021. The facility will have the capacity for more than 30,000 orders per week. This compares to the 85,000 orders per week that is expected from Ocado’s fifth CFC that is currently being built at Purfleet. The new mini-CFC is being built in an existing warehouse. Despite the smaller size of this new CFC, Ocado said that it expects it to achieve productivity close to that in its standard facilities. It will also provide approximately 815 jobs in the local area.

Support growth plans

The purpose of the new CFC is to support the growth plans of Ocado Retail, and to reach more customers across the UK. The site will see Ocado Retail serving customers with a full grocery range direct from the facility. Therefore, customers near Bristol will be offered a wider range of options for delivery, including same-day delivery. Ocado said that these mini-CFCs can complement standard CFCs in the future, building fulfilment networks in areas not suitable for larger facilities.

Tim Steiner, chief executive of Ocado Group, commented: “The Ocado Smart Platform is constantly evolving as we innovate to adapt to changing customer needs. We can now deliver the best customer experience across a whole range of customer missions, through CFCs, mini-CFCs, and micro fulfilment centres. Ocado’s technology is dynamic and constantly improving, delivered through tried and tested solutions with proven and attractive economics. Our mission is to deliver the future of online shopping today, and we believe we are succeeding.”

Keep up to date with developments at Ocado

See the latest Ocado news here and IGD Retail Analysis subscribers can learn more from our Ocado Strategic Outlook presentation.