TOP 100 ENGLAND SITES
| |||
|
| |||
| |||
|
| |||
| Teenagers bailed after pier fire Two teenagers who were arrested on suspicion of arson after a huge fire destroyed Hastings Pier are released on bail. bbc.co.uk |
Ocado to create 2,000 jobs with second distribution centre Midlands location will allow Ocado to deliver to 85% of UK postcodes as rapid growth expected in online grocery marketInternet grocer Ocado today confirmed plans to build a second distribution centre in the Midlands that could handle 180,000 orders a week – or £1bn in sales – doubling the potential capacity of the business.The company, which floated on the stock market in July, said it had paid close to £18m for a 999-year lease on a 14-hectare site near Tamworth. It will cost £210m to build and be operational by the end of 2012, creating up to 2,000 new jobs. The depot will be geared up to handle 120,000 orders a week but the company said that, providing the demand was there from customers, that could rise to 180,000 when it was in full swing.At present Ocado, which sells Waitrose products, picks up customer orders from its hi-tech base in Hatfield. Last month it said sales were up almost 30% to £372.2m in the first 36 weeks of the year and it is confident that rate of growth will continue. Indeed the north London depot is also being expanded to enable it to handle anticipated sales of £1bn, with £80m being spent on upgrading the machinery and freeing up space so it too can handle 180,000 orders a week – up from the current level of 105,000.Ocado has yet to turn a profit, with its shares languishing at 28% below their offer price of 180p, when the business was floated to raise £200m. The company was forced to slash the original offer price of 200p–275p to attract investors. However Tim Steiner, its chief executive, has defended the listing arguing it has enabled the company to raise the money needed for the crucial second depot. Analysts at IGD expect the online grocery market to grow at 14% a year for the next five years and Steiner believes Ocado's centralised model is more efficient than picking products from supermarket aisles, which is the method preferred by larger rivals Tesco and Asda.The second centre means Ocado's white and green liveried vans would be able to deliver to 85% of UK postcodes, compared with 65% at present. "We are delighted to have secured an outstanding site for our second CFC [distribution centre]," said Steiner. "Ocado is growing rapidly across the country and this location ensures we will have capacity to provide more customers with our online grocery offering."Shore Capital analyst Clive Black, who rates the shares a sell at 128p, said the "whacking" level of investment in the Warwickshire site was an "unproven financial experiment" that could delay "meaningful profits" for investors. He also questioned the company's decision to build in the Midlands rather than consolidate its position in London and the south-east. "Like the whole consumer economy Ocado faces headwinds," said Black. "While food is currently the 'affordable treat', there must be apprehension amongst management about what 'austerity Britain' may do to the demand profile of this firm."OcadoSupermarketsRetail industryZoe Woodguardian.co.uk © Guardian News & Media Limited 2010 | Use of this content is subject to our Terms & Conditions | More Feeds guardian.co.uk |
How cuts could affect each Armed Service BBC reporters around the UK look at how the defence cuts could affect each of the armed forces and the comunities around them. bbc.co.uk |
The Isle of Nick Clegg Telegraph View: How much do the Deputy PM's choices on Desert Island Discs tell us about him? telegraph.co.uk |
Housing rip-off The billions going to some of Britain's worst landlords news.bbc.co.uk |