Retail and logistics service provider Hermes inaugurated its largest logistics centre in Europe yesterday in Rugby in the UK (County Warwickshire, central England) in the presence of about 200 clients, partners and employees. The new “Midlands Super Hub” will be able to handle a record number of up to 1.5 million parcels a day. In a forward-looking action, about 34 million euros were invested in the construction of the new facility. In addition, this will create an estimated 100 jobs for the region. The 140,000 m² industrial complex is currently the largest parcel centre of its kind in the UK, and the second largest parcel distribution hub in Europe.
With the construction of its new Midlands Super Hub in Rugby, the Hermes Group gears itself up for efficiently handling the rapid parcel volume growth in the wake of the continuing boom in online retail in England. In the current financial year alone, the volume of the e-commerce market in the UK has once again grown by 14% to about 72.7 billion euros (source: Euromonitor). As a service provider for many leading retailers and brands, Hermes UK has benefited significantly from this positive trend and has reported steady double-digit growth rates over the past few years.
Hermes paves the way for further growth
Carole Woodhead, CEO of Hermes UK: “We are extremely proud to officially open our Midlands Super Hub in Rugby, the largest parcel hub of its kind in the UK. The new hub facility significantly expands our existing logistics network in the UK and creates the basis and prerequisite for us to continue growing successfully in an exciting and highly competitive market in the interests of our customers”.
At a price tag of about 34 million euros, this is the largest investment in the history of Hermes UK to date. Donald Pilz, CEO of Hermes Europe, comments: “Congratulations to the management team of Carole Woodhead for yet another milestone in the extraordinary history of Hermes in the UK. Our current investment reaffirms our confidence in the future and success of the UK e-commerce market. Despite the current Brexit debate, the UK market continues to play a key role in the global expansion plans of many of our clients. With the new hub facility, Hermes not only gains an asset in the increasingly international competition but also sets high standards for the entire CEP industry in Europe”.
Logistics at the highest level
With about 140,000 m² exterior and 25,000 m² interior space, the new hub spans an area of more than 34 football pitches. Using two sorters with state-of-the-art camera scanners, an estimated 40,000 shipments per hour can be handled during the first stage of its development. That translates to just under one million parcels per day. Additionally, it also has reserve capacities for the busy peak season over Christmas. During the second expansion stage, three sorters will be in use, increasing the maximum handling capacity to approximately 1.5 million parcels per day. Hermes UK has increased its total handling volume by a significant 45% with the launch of the new facility.
With the Midlands Super Hub in Rugby, Hermes is paving the way for further growth – and not just in the UK. The new facility is the largest logistics facility in the entire Hermes Group, and one of the most efficient, most cutting-edge parcel logistics locations in the whole of Europe. Hermes furthermore continues to maintain the largest self-managed ParcelShop network for private customers in Europe, with about 36,000 collection points. Hermes France Holding SAS has also belonged to the Hermes Group since the beginning of the current financial year, adding weight to the logistics and retail service provider’s portfolio in the French market.
Germany also targeted for investment
Hermes is currently also carrying out comprehensive, sustainable modernisation of its logistics infrastructure in the German market at a cost of about 300 million euros. Throughout Germany, 35 state-of-the-art locations will form the backbone of parcel shipping by Hermes Germany. Nine new logistics centres will become operational by 2019, including locations in Hamburg and Ketzin (Brandenburg) near Berlin. The first of the new parcel centres – the logistics centre in Bad Rappenau (Baden-Württemberg) – has already been in operation since May 2017. Hermes Germany’s new logistics centre in Mainz is scheduled to open in the autumn.