Wilko sells distribution centre to DHL for £48m
Wilko has sold its distribution centre in Worksop, Nottinghamshire, to logistics giant DHL for £48m to help refinance the business.
The retailer has leased the site back from DHL under a 15-year partnership agreement. The move comes as Wilko battles to cut costs across the business due to the impact of the cost of living crisis on trading.
The business refinancing will allow the homes and garden retailer to improve its proposition and customer experience across its 402 stores and online, according to Wilko.
It said day-to-day operations at the warehouse would remain unchanged.
“It also means Wilko can concentrate its efforts on doing what it does best – supplying hard-working families with great-value products, easily accessible either online or in store,” the company said.
Wilko CEO Jerome Saint-Marc added: “It’s standard business practice to constantly review how we manage our finances. This property deal with DHL represents long-term stability for us and our team members and is the right response to the current market conditions and our priorities.
“We’re making smart choices to trade as a business and allow us to continue to invest in our long-term transformational strategy. Wilko remains family-owned and continues to focus on helping hard-working families to be the best they can be, delivering great-value products to our customers.”
Wilko’s latest full-year accounts, for the 12 months ended 30 January 2021, showed sales fell 7.3% to £1.4bn as lockdowns hit high street footfall.
