Titan Warehouse Insurance notes that it’s the warehouse which gets part of the blame for weak performance of the retail giant the House of Fraser.
The retailer named a new distribution centre, together with warm weather and the general consumer downturn, as the main reasons for the profits falling by 16% to £58.6 million for the year to 28th January, 2012.
The new distribution centre is in Wellingborough, Northamptonshire, and became operational last summer. It represented a huge investment, but as it was brought on stream, distribution had to take place from both the new centre and the old one in Milton Keynes, causing increased costs.
However, even though House of Fraser announced poorer profits for the period under review, sales were actually up 3% over the year.
Given the problems with the new warehouse, the trading environment and the continuing recession, the House of Fraser management said the results were in line with their competitors.
Chief Executive Officer of Titan Warehouse Insurance, Basil Tsapralis, said:
“This story just shows how crucial the warehouse can be for companies. No longer just places of storage, the modern day warehouse is often a sophisticated logistical centre which can make, or break a company. Such was the importance of the warehouse here, that’s its dual running with the old premises in the hand over period, actually impacted upon the financial results.”
Titan Warehouse Insurance provides policies for companies operating all kinds of warehouses throughout the UK. It has earnt a reputation for competitive prices and high levels of customer service.