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House of Fraser distribution centre upgrade expected to deliver £5 million efficiency savings this year

House of Fraser updated on its distribution centre developments at its half year results this week. The company has embarked on an £18 million investment into its distribution centre. The move is part of the company’s Transformation Programme, which was initially launched at the beginning of its fiscal year 2018.

£10 million of the investment will be provided by the group’s majority shareholder with the aim of increasing capacity, driving operational efficiencies and improving profitability. The company said that that project was progressing well and is expected to deliver £5 million of efficiency savings in the second half of the year, rising to a run rate benefit of £15 million of efficiency savings by the time the project completes in mid-2018.

Alex Williamson, CEO of House of Fraser said his business had much to be optimistic about, despite disruption to the company’s sales after an ecommerce replatforming. “Our new web platform greatly improves our customers’ experience and online margins whilst our investment in the distribution centre will deliver cost savings through improved operational efficiencies. And this is just the start of our journey with several other projects designed to provide additional sales and costs savings as part of the overall Transformation Programme due to commence shortly,” he said.

Image credit: House of Fraser

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