Ocado Group is set to close its warehouse in Hatfield, putting some 2,300 jobs at risk.
Operations at the Hertfordshire shed, which was its first fulfilment centre, will shift to other sites including its new Luton warehouse, set to open this year.
The online grocer said its newer sites were faster, use less energy and are better placed to fulfil same-day delivery orders.
The Hatfield centre opened in 2000 and deals with around a fifth of the 400,000 orders that the grocer processes each week. The number of orders it fulfils is not expected to be affected by the closure.
