Ocado's shares, which fell 5.2 per cent on Wednesday when the company said the fire would hit sales growth, were down a further 9.1 per cent to 881.4 pence at 1135 GMT.
At the height of the fire, more than 300 firefighters worked to tackled the flames. "As Andover was providing approximately 10 per cent of our current capacity, as a result of this incident there will be a constraint on our ability to meet our growing customer demand and there will be a reduction in sales growth until we can increase capacity elsewhere".
Deputy chief fire officer Andy Bowers said the evacuation of Walworth Industrial Estate in Hampshire was a precaution to keep the public safe. "Unfortunately the fire which started yesterday. was not contained as we believed, and last night expanded", Ocado said in a statement.
The Ocado warehouse where fire broke out on Tuesday has been completely destroyed, dealing a blow to the online grocer. The company said Tuesday that it's talking to other retailers about potential deals, renewing speculation about a possible partnership with Marks & Spencer Group Plc.
"As previously announced, there has been substantial damage to the Andover building and its contents".
But the firm stressed it has comprehensive insurance for the property, stock and equipment and for business interruption losses. Although sprinkler and alarm systems assisted the fire service in the fire's early stages, it spread overnight. Roads around are the site were opened, although firefighting operations continued. Ocado's trucks were not affected and have been removed from the site.
It's the latest of several fires that have struck online retail sites. It typically handles more than 4,000 orders a day, using hundreds of robots to select groceries to be loaded on trucks and delivered to homes across southern England.
"The question investors have is: 'Does this impact the viability/scalability/cost of the CFCs that they have sold?,'" said Bernstein analyst Bruno Monteyne.