Online grocer Ocado has announced plans to shut its oldest distribution centre as it shifts towards robotic warehouses, in a move that will affect around 2,300 workers.
The group said it will close the site in Hatfield, Hertfordshire, which accounts for about a fifth of its customer orders each week, later this year.
The orders will instead be shifted to a new state-of-the-art automated warehouse in Luton, which is due to open last in 2023.
Ocado has now started consultation with the 2,300 workers based at Hatfield, but said it aims to offer jobs to as many of those affected as possible at nearby sites, such as Luton.
We want to keep as much of this talent and experience within the business as possible and expect to retain a large proportion of colleagues impacted by these changes— Tim Steiner, Ocado Group
Ocado Group chief executive Tim Steiner said: “As the online grocery channel grows, our new, enhanced fulfilment centres and technologies will drive a step change in customer experience and efficiency.
“With this capacity coming online, now is the right time for us to halt operations at our oldest facility at Hatfield and consider our future options for the site.”
He added: “We want to keep as much of this talent and experience within the business as possible and expect to retain a large proportion of colleagues impacted by these changes, either in our new Luton CFC (customer fulfilment centre) or across our wider UK network.”
