Arcadia set to open 1m sq ft DC next year

Arcadia Group, which owns Top Shop, Burton and Dorothy Perkins, expects to open a new one million square foot distribution centre at Daventry in 2019, holding company Taveta Investments has revealed in its annual results.

The group reported sales of £1.9 billion for the year to 26th August 2017, down from £2bn the year before. Total group operating profit before goodwill, amortisation and exceptional items was £124.1m, down from £215.2m last year.

Chief executive Ian Grabiner admitted that headline sales and profits had been disappointing, but pointed out that worldwide digital sales were up 11.5 per cent last year. “The increase in digital sales is taking place at the expense of traditional ‘bricks and mortar’ retailing, as consumers embrace the opportunity to purchase across all the channels available to them.

“We continue to invest capital – having spent £124.9m in the year to 26th August 2017. We are continuing to invest with a projected spend of £81.5m this year. We are developing our new state of the art one million net square foot freehold distribution centre in Daventry which is being fitted out for opening in 2019, together with significant developments to our on-line digital platform for our customers,” said Grabiner.

“We look to be as efficient as we can be given the challenging retail environment.”

Grabiner said the group was continuing to develop its wholesale business overseas, and built partnerships with Zalando and Nordstrom which sells its merchandise via their distribution channels.

Currently, the group employs 1,500 people at three UK distribution centres and operates distribution hubs in Singapore and the USA.

It sends 30 million items to 900 international stores each year, and delivers over 10 million online orders to 120 countries a year too.