Shares in online grocer Ocado tumbled after it warned sales growth could be damaged by a devastating fire at one of its key warehouses.

Hundreds of firefighters tackled a blaze that broke out at the site an Andover, Hampshire, in the early hours of Tuesday and took more than 24 hours to control.

Ocado shares fell 8 per cent following the announcement of a potential slowdown until it can shift operations to other locations.

We’ll tell you what’s true. You can form your own view.

From 15p €0.18 $0.18 USD 0.27 a day, more exclusives, analysis and extras.

The hi-tech robotic warehouse provides around 10 per cent of Ocado’s capacity, processing more than 30,000 orders a week.

Ocado said the shutdown means there will be a “constraint on our ability to meet our growing customer demand”.

It added: “There will be a reduction in sales growth until we can increase capacity elsewhere.”

Some customer orders have been cancelled as a result of the blaze but Ocado said it was “working hard to resume normal service as soon as possible”.

The fire was declared a major incident as it swept through the building and locals were urged to keep their windows and doors shut due to the smoke.

Ocado said the fire, which started in a corner of the ambient grid, caused substantial damage to the majority of the building and its contents.

Part of the roof collapsed, but the firm confirmed no members of the Ocado team or the public were injured.

Hampshire Fire and Rescue Service said four firefighters had been treated for slight smoke inhalation.

One local tweeted during the blaze: “Just streets away – the noise, heat, smell and light pouring from the Ocado warehouse is frighteningly real.

“120+ firefighters are risking their lives tackling the blaze. Makes you truly appreciate the brave men and women of the fire service!! Thank you. Stay safe.”

Ocado stressed it has comprehensive insurance for the property, stock and equipment and for business interruption losses.

“Once we have had time to assess the damage and prepare a plan to return the CFC (customer fulfilment centre) to operation we will update further as appropriate,” Ocado said.

Support free-thinking journalism and subscribe to Independent Minds

Retail expert Bruno Monteyne at Bernstein said the sales impact was a “material dent in the UK retail business”.

He said it was unclear whether the cause of the fire – which remains unknown – has “any implications” for Ocado’s technology platform.

The Andover plant is one of four automated warehouses built by the group, which have enabled it to win a number of major international deals providing IT solutions to other retailers.

Comments

Share your thoughts and debate the big issues

Learn more
Please be respectful when making a comment and adhere to our Community Guidelines.
  • You may not agree with our views, or other users’, but please respond to them respectfully
  • Swearing, personal abuse, racism, sexism, homophobia and other discriminatory or inciteful language is not acceptable
  • Do not impersonate other users or reveal private information about third parties
  • We reserve the right to delete inappropriate posts and ban offending users without notification

You can find our Community Guidelines in full here.

Loading comments...
Loading comments...
Please be respectful when making a comment and adhere to our Community Guidelines.
  • You may not agree with our views, or other users’, but please respond to them respectfully
  • Swearing, personal abuse, racism, sexism, homophobia and other discriminatory or inciteful language is not acceptable
  • Do not impersonate other users or reveal private information about third parties
  • We reserve the right to delete inappropriate posts and ban offending users without notification

You can find our Community Guidelines in full here.

Loading comments...
Loading comments...