Ocado launches robotic centre in Luton as sales rise

Ocado robotic Image credit: Ocado

Ocado Retail has announced a 7.2% bump in sales as it opens its new robotic customer fulfilment centre in Luton.

The digital grocer today published its latest financial results, revealing retail revenue had grown to £569.6m in the third quarter, alongside small boosts to orders per week and total customers.

Shares in Ocado were up by 5% this morning following the positive results posted by the company’s retail arm, though the company’s 2023 fiscal year guidance has remained unchanged.

Ocado Retail CEO Hannah Gibson said the “continued progress in Q3 underpins our confidence in delivering our FY23 guidance of mid-single digit revenue growth and full year profitability, and we have started the final quarter positively”.

Gibson credited the boost in part to the operational efficiency granted by Ocado’s use of automated robotic warehouse equipment. The company announced the launch of its latest robotic fulfilment centre in the Southern English town of Luton alongside its results.

Gibson said the centre will drive “new innovations that will enable huge leaps forward in fulfilment productivity and a better experience for our customers”.

The CEO added: “Opening Luton will enable us to double productivity versus our first-generation Hatfield site. Our robotic CFC in Purfleet is now already regularly achieving UPH (units processed per labour hour) of over 220 and we expect Luton to achieve 300+.”

In July, Ocado launched its first Asia-based robotic fulfilment centre in Japan.