Ocado suffers fire at South London fulfilment centre


Ocado Group PLC (LON:OCDO) revealed that the collision of three robots caused a fire at its fulfilment centre in South London on Friday.

The online grocer said no one had been injured and all staff on site are safe, while less than 1% of the grid was damaged.

READ: Ocado sales growth slows as online boom eases

The FTSE 100 group said that most of the plant is in good condition, aside from some residual smoke smell, and it is working to restore normal service as soon as possible.

The Erith facility, which normally handles up to 150,000 orders a week, is expected to resume operations this week.

It’s the second fire for Ocado, after the Andover warehouse burned down in 2019 due to an electrical fault.

“There is reputational risk from cancelling swathes of orders – small I’d say – but nonetheless to be considered,” analyst Neil Wilson at Markets.com commented.

“But the main thing investors are concerned about is the safety of the technology – will this be repeated? It is only two years since the Andover facility burned down. Will this impact on future deals with international partners?”

Shares shed 3% to 1,759p on Monday morning.


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