Retail Consolidation Centres

1. Retail Consolidation Centres Presented by Phil Steers

2. “Our vision is to become the most recommended, trusted and respected in the business, the logistics brand of choice.”

3. “In a market that often offers one size-fits-all solutions, we’re proud to specialise. So, in addition to a comprehensive suite of logistics services, you'll find unique skills and specialist knowledge. The natural choice for retail and high value logistics.”

4. Logistics services • Extensive added-value services • State-of-the-art e-fulfilment services • HMRC approved customs warehousing • Fast international delivery • Tried and tested security services • Retail consolidation centres

5. Key facts • 22 Locations in excess of 2.4m sq ft • 3000 FTE Staff • 650 Vehicles • Turnover £200m+ • Consolidation Centres at Meadowhall Sheffield & White Rose Centre Leeds • Planned Consolidation Centres at Sites in London, Portsmouth, Newcastle, Birmingham and Glasgow • Meadowhall is the only self funding/ profitable consolidation centre in the country

6. Retail Consolidation Centres

7. Business needs by sector • Shopping centres • Constant pressure for additional sales floor space, restricted by planning, but demanded by shoppers • Shoppers demand full product range availability • A solution to reduce congestion around the shopping centre • City centres / other retail destinations • Need to find a balance between customer demand, environmental pressure and planning restrictions

8. Supply chain challenges • Examples of some of the many challenges faced; • Improving or simply maintaining product availability • Delivery access, congestion and time pressure • Small/ limited stock rooms • Waste disposal / recycling management • Collections and returns management • Security control • Increasing supply chain costs • Reducing carbon footprint

9. How Does Consolidation Work? • ‘Large heavy goods vehicles often arrive at their delivery point with part loads and spare capacity’. We can consolidate several part loads from large vehicles on to a single fully utilised small vehicle, reducing vehicle movements into traffic sensitive area’s • Logistics operators can deliver to us less frequently by creating bulk loads, we then split these into smaller manageable orders and transport them ‘the last mile’ at a frequency to suit the retailer, whilst producing a fuel saving for the logistics provider.

10. The Meadowhall Model • Next to Junction 34 M1 • Outside the main traffic flow of Meadowhall • Capable of serving the city centre • Capable of serving the South Yorkshire area • Cost effective since becoming part of Clipper Logistics • Next to two possible alternative modes of transport into the city centre, the Tram and the Canal

11. Issues for stakeholders • Landlords • Service area congestion • Retailer satisfaction difficult to manage in poor trading climate • Potential security and health and safety issues • Retailers • Inability to plan staff levels effectively • Restrictions on stock holding and potential ranges • Lower productivity and sales due, to non core activities • Suppliers • Increased congestion around multi retailer sites, slowing deliveries • Turnaround times reduced leading to additional cost • More reliable services demanded by customer base • An increase in time travelled in urban area’s increasing fuel consumption.

12. Shopping Centres City Centres Retail Parks Off-site rapid response Out of hours Secure Consolidation assists congestion Reduces pollution Holding and supplying stock on demand Secure off-site Supplying retail & catering on demand Consolidation capability Cross docking / Remote stockrooms / In-store logistics / Home delivery Worldwide delivery consolidation / Pre-retailing / Security scanning

13. Shopping Centre & City Centre solutions Goods In Stock handling Stock request Delivery to store Assembly e.g. Pre-retail Collections & Waste Recycling Direct from suppliers and retailer DCs Store specific Flexibility of drip feed Receive stock from stores InventoryManagement Quick turnaround Environmental Benefit - Reduce carbon footprint

14. Shopping centre - benefits of consolidation model • Sales effectiveness • Contribution to sales uplift • Stock visibility • Stock availability • Stock management • Stock security • Increase in sales floor space • Improved staff moral • Destination of choice • Additional sales floor • Retail operations efficiency • Delivery / collections to suit business needs • Pre-retail to meet demand • Bulky item consolidation • Returns management • Decrease in operational costs • Staff rota’s to reflect replenishment cycle • Home delivery • Worldwide delivery capability • Environmental benefits • Reduction in vehicle movement • Improved vehicle utilisation (pre-consolidation reducing journey) • Removal of waste packaging for recycling purposes • Reduces carbon footprint

15. Case study - Meadowhallconsolidation centre • Award winning consolidation centre; • European Supply Chain Excellence 2007 • Jean Louis Solal Award - Centre Productivity 2005 • ICSC Maxi Award – Revenue Impact 2005 • BCSC Purple Merit Award – Retailer Partnership • 34,000sq ft of warehouse space offering bespoke solutions • Serves over 180 retailers in the centre • Opportunity for retailers to make operational savings and increase sales. Retailers quote double digit % uplifts in sales, one retailer quotes an uplift of 240% during one sale • Staff retention and motivation is high due to stock arriving shop floor ready Pre-retailing / Cross docking / Secure Stock storage / Home delivery / Delivery consolidation / National logistics / Customer collection / Inventory management / Refit / store build support / Sale / Seasonal support

16. Retail Consolidation Centres Thankyou