Shopping retailer is reported to have submitted planning for a 35,000m2 warehouse in the Midlands

Ocado, the online retailer, looks set to acquire a 35-acre site near Tamworth, in Staffordshire to build a new warehouse.

According to a report in the Telegraph Ocado has already submitted planning permission for a 35,000m2 warehouse facility that will be capable of delivering between 180,000 and 200,000 orders a week.

The retailer hopes to open the warehouse by the end of 2012 would have the potential to generate an additional £1bn of sales once it was up and running. Ocado will use the proceeds of its July floatation to finance the development of the new distribution centre.

The firm, which has already run up total losses of almost £350m, is expected to move into the black next year.