Kitchenware specialist Lakeland is making a £10 million
investment in its distribution centre to boost its expansion in
the UK as well as into mainland Europe and the Middle East.
As part of its plans, Lakeland aims to grow its store portfolio
from 60 to 100 stores in the UK and double the number of stores
it has in the Middle East to 14 within three years.
In the UK, sales in 2012 were the company’s highest ever, fuelled
by the popularity of home baking and the resurgence of the
“home-made is best” culture. The decision to develop
the Lakeland distribution centre in Kendal, Cumbria is designed
to support the company’s planned growth in the UK and overseas.
It is envisaged that the expansion of the distribution centre and
opening of new stores could create up to 600 jobs over the next
five years.
“Whilst this is not the largest investment that has been
made by Lakeland, it is seen as being one of the most significant
as it is being made at a time when the economy isn’t as
favourable as has been experienced in the past,” managing
director Sam Rayner said in a statement. “We have been
holding off on this investment for a number of years but now feel
that we need to prepare the company for the next phase of its
development and the expansion of the distribution centre is a key
part of our plans for growth,” he added.
Lakeland also plans to build on its ecommerce business, which is
currently enjoying double-digit sales growth in the UK. Summer
2013 will see the Lakeland brand launch in Germany with a
dedicated website and catalogue for the German market. Further
European growth is anticipated to follow.
In related news, Lakeland is teaming up with Morrisons to launch
a new website as part of the supermarket’s online nonfood
offering. It will be Morrisons’ third transactional site,
following the launch of MorrisonsCellar.com in November 2012 and
the acquisition of babycare retailer Kiddicare.com in 2011.
Launching in the spring, the new site represents the latest step
in Morrisons’ strategy of expanding its nonfood business online
to allow its supermarkets to remain focused on fresh food. The
partnership sees Lakeland’s range of kitchenware sit alongside
Morrisons’ existing range of “everyday essentials”.
Initially, fulfilment of orders will be undertaken by Lakeland,
but Morrisons said that “in time” the supermarket
will take over.
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