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SuperGroup eyes efficiency savings with new warehouse

SuperGroup is to move to a new distribution centre which is set to make its operation more efficient.

The fashion group is to move to the site in Brockworth, Gloucester by the end of its financial year in April. 

The new distribution centre has the capacity for the retailer to expand its operations twice over.

The retailer has invested £1.5m in moving its retail operation to the larger, 0.25m sq ft distribution centre, which is managed by specialists Wincanton.

The depot has been used in conjunction will its existing centre in Barnwood, also in Gloucester, since September and has not experienced any issues.

Its ecommerce and wholesale operation will stay Barnwood, however fifty to sixty employees face redundancy there.

SuperGroup, which operates brand-of-the-moment Superdry and Cult, has had its fair share of distribution headaches with a warehouse glitch hindering both the amount of stock and range of sizes reaching its stores. The fault, along with cost of redundancies, is set to wipe £8.8m off profits this year.

House broker for the fashion group Seymour Pierce analyst Freddie George said: “Wincanton’s handling of distribution should lead to significant efficiency benefits. Most importantly, it should improve availability and provide a platform for future growth. Barnwood, was not designed as a fashion retail warehouse.”

George said that distribution costs should decline following the move.

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