1,000 jobs in store as retail group The Range announces plans for mega-warehouse at Severnside

January 21, 2016
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Homeware retailer The Range is to create more than 1,000 jobs at a massive new warehouse on the outskirts of Bristol, it confirmed yesterday.

The rapidly expanding firm has bought a 55-acre site at Severnside to build a 1.2m sq ft distribution centre – the size of around 15 Wembley stadiums and, when completed, the largest building of its kind in the region.

It is expected to open in 2017 and will supply the whole of the South of England. It has the potential to be expanded further to 1.3m sq ft.

The deal reflects the strength of the Severnside area as a modern logistics centre capable of attracting the type of modern mega-warehouses increasingly being developed by retailers as national or regional distribution centres. These huge schemes typically act as hubs which link into a network of smaller distribution centres.

The area is just 4.5miles from the M48, linking it to the motorway network and putting 85% of the UK within a 4.5 hour drive. It is also six miles from Avonmouth Docks and has a rail link, allowing goods to be distributed across the UK by train. Plans are in place to put in a new junction on the nearby M49 which would give direct motorway access to the area.

Central Park – the distribution park chosen by The Range – is the South West’s largest scheme of its kind and is already home to Frozen food retail chain Farmfoods’ 175,000 sq ft temperature-controlled distribution centre and pallet firm CHEP UK’s 50,000 sq ft distribution and repair centre.

Nearby are major distribution bases operated by Tesco, Next, Royal Mail and drinks group Gaymers.

The new Range distribution centre will support the Plymouth-based group’s ambitious expansion plans.

Already one of the UK’s fastest-growing retailers with more than 115 stores across the country, it plans to open 35 this year.

The Severnside centre will support this growth and an increase in its product range. The group sells 65,000 product lines spanning DIY, homeware, furniture, lighting, arts and crafts and garden equipment.

The centre, the result of a total investment of £100m by The Range, will also support The Range’s European expansion plans and will be one of the most hi-tech warehouses in the country.

The deal announced today is one of the largest for a distribution base ever secured in the South West and is likely to be one of the UK’s biggest logistics deals this year. The Range had looked at a number of other sites along the M4 corridor, including near Chippenham, but had encountered local opposition.

The Range chief executive Chris Dawson, pictured, said: “The Range has continued to buck the trend of UK retail and opened superstores throughout the recession. This distribution centre is a big step in the expansion plans that I have for the business, it’s non-stop for us.

“Along with over 1,000 new jobs at the site this building will deliver long-term service contracts for local suppliers and inject millions of pounds into the Bristol economy every year whilst supporting local firms during the construction.”

He said when fully operational the warehouse would act as a training hub for smaller distribution centres around the country.

“I will also offer tours to schools, colleges and universities as I am keen to give the future industry leaders a chance to see how a big UK operation works,” he said.

The billionaire, who launched the business in 1980 as a market trader, joked today that he had done the deal to build the distribution centre on his favourite beach in Barbados.

“The same place I was when I bought all of the MFI stock year’s back. I think the Pina Coladas at the hotel have something special in them as I always do some of my best negotiating after a couple,” he said.

Michael Shebson of Central Park developer Delta Properties added: “We are delighted to welcome The Range to Central Park. Central Park has a unique offer for occupiers with motorway, on-site direct rail freight service and adjacent sea connections at the expanding Port of Bristol. It offers fully serviced sites with an established planning permission.

“The Range has been seeking a solution along the M4 corridor for some time now – we had no hurdles to their requirements and thoroughly enjoyed working with them to achieve a fast result. We hope that the future addition of a motorway junction on the M49 will further attract like-minded distribution occupiers to one of the UK’s best distribution locations.”

The new M49 junction, announced by Chancellor George Osborne in 2014, would link Central Park and the wider Severnside and Avonmouth area directly to the motorway network. The £50m junction is part of a £15bn road improvement package for the South West.

Property agents Bilfinger GVA and Knight Frank represented Delta Properties while JLL acted for The Range.

Paul Baker, a director in JLL’s Bristol office, described The Range’s decision as a further vote of confidence in Bristol and one that could encourage other national retailers to build similar distribution centres in the area.

“The reputation of this area as a first-class distribution location has been building year on year and The Range’s decision to build what will be the largest ever distribution centre in the South West of England is testament to that,” he said.

“The planned new junction on the M49 will mean transport connections will improve even further, which will make the area even more attractive to investors and occupiers.”

The Range warehouse development will be managed by Birmingham-based Stoford, which also handled the nearby Cooperative Group’s warehouse scheme.

 

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