99p Stores at Prologis Park Pineham
The Requirement
- Single price retailer, 99p Stores had been growing before the economic downturn, but the recession and the collapse of Woolworths rapidly accelerated both its sales and store expansion programme. Having acquired a number of prime Woolworths’ sites, the company needed to increase its distribution capacity quickly
- 99p Stores needed the structure of the lease to reflect its business plan
- 99p Stores operates on small margins, therefore it was vital that the building would be cost-effective to operate
- 99p was keen to retain its existing staff and therefore needed its new facility to be close to its existing 152,498 sq ft warehouse at Prologis Park Daventry
The Solution
- In April 2009, 99p Stores had only 12 months remaining on the lease of its existing facility, so it started talking to Prologis about moving to a larger building. Although 99p Stores then started to focus on a second-hand warehouse in Rugby, it soon became clear that this building would not suit its operations and it re-opened discussions with Prologis
- In March 2010 a deal was signed on a new 372,572 sq ft distribution centre at Prologis Park Pineham
- The lease was structured so that 99p Stores can manage early payments in line with its growth forecast. In addition, Prologis included the building fit-out as part of the deal, which meant that 99p Stores was able to maintain the continuity of its operations and move with the minimum disruption to its business
- Another important benefit was that the two buildings are located in the same area, so 99p Stores was able to retain staff
- With BREEAM ‘Excellent’ accreditation and an EPC ‘A’ rating (CO2 index 25), the operational energy costs of the new 99p Stores building are 67% lower than an older EPC ‘E’ rated (CO2 index 76) building of the same size
The Result
Click to view case studies listing
