SuperGroup to open new distribution centre to support growth
The existing distribution centres at Gloucester Park and Barnwood will continue to operate while the new facility in Burton-on-Trent is being built. With 500,000 square feet of space, the Burton site is expected to be fully operational towards the end of the 2014 financial year.
SuperGroup said in December 2012 that its existing retail distribution configuration was operating with sub-optimal cost structures and was unlikely to support the company's medium to long term capacity requirements.
In a statement issued yesterday, SuperGroup said: "The group is pleased to announce that it has entered into a long term agreement with Clipper Logistics to provide an on-going operational solution for the fulfilment of the group’s multi-channel retail activities from a new distribution centre in Burton-on-Trent.
"The distribution centre will support the group’s growth aspirations in its next phase of development."
SuperGroup added that the new centre’s location would enable it to supply Superdry's retail outlets more efficiently and that it would enhance the fulfilment of brand's online operations in both the UK and overseas. It will also help to support planned growth for at least the next five years.
SuperGroup will invest around £5 million in the new centre which is expected to generate "significant" cost savings and improved operating margins once fully established.
Julian Dunkerton, chief executive of SuperGroup said: "This investment marks SuperGroup moving into the next major phase of development and equipping itself to meet its increasing sales ambition. Ideally located, SuperGroup will have a highly efficient UK distribution centre, enabling the Group to generate both financial and operational benefits and provide a platform for us to meet the increasing demands of e-fulfilment."
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