SuperGroup to boost growth with new distribution centre

SuperGroup, owner of the Superdry fashion brand, is pushing forward with its growth aspirations with the announcement of its next “major phase of development” to move its distribution operations. In the interim results in December 2012,

the Group noted that its existing distribution operation would be “inadequate” to support its medium to long-term capacity requirements, so to help support the brand’s growth the group is to open a new 500,000 square foot distribution centre.

The company plans to move its distribution operation from Gloucestershire to Staffordshire, with the opening of a new centre in Burton-on-Trent, which will help the group fulfil the increasing demands on its e-commerce and aid its multi-channel expansion.

The location of the new site is also ideally located for national carrier networks, which will allow the company to supply its retail outlets more efficiently and support the fulfilment of the Group's internet operations both in the UK and internationally.

SuperGroup investing in its e-commerce growth

SuperGroup will invest around 5 million pounds in the new centre, which after the initial set-up and transition phase is expected to generate “significant cost savings” and help improve the company’s operating margins. It is also hoped that the improved operating capability will help support the retailer’s planned growth for at least the next five years.

The Burton site is expected to be fully operational towards the end of the 2014 financial year, and whilst the new facility is being developed the existing capacity at Gloucester park and Barnwood will continue to operate.

Chief executive Julian Dunkerton 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.”

SuperGroup also added reassurances that the although the new facility requires a capital investment of circa 5 million pounds this would not having any affect on the underlying profit before tax for its 2013 financial year.

Image: Superdry