Friday 28th Oct 2016 - Logistics Manager

SuperGroup WMS upgrade causes £6m problem

SuperGroup, the clothing company whose brands include Superdry, has warned that is has been experiencing problems following the warehouse management system upgrade at its Barnwood site, resulting in “a significant, temporary reduction both in the amount of stock and range of sizes reaching its UK stores”.

It estimates that the issue will hit profits to the tune of £6m to £9m.

In an update for investors, the group said that at the end of August it implemented an upgrade programme to its warehouse management systems to increase capacity and efficiency at Barnwood to meet future growth in demand. 

However, once live, the business encountered some short-term issues in the transition which had caused stock problems.

“The Group has reacted swiftly to resolve the situation.  Whilst the majority of the system issues have been rectified, some are still ongoing.  Temporary warehouse facilities have been commissioned to address capacity requirements.

“It is anticipated that our distribution capability will have returned to normal levels of operation and have been fully upgraded with additional capability and efficiency in November. 

“We estimate that the total cost of this isolated event, including the additional temporary warehousing capability and resulting lost sales during the period, will impact the current year’s profitability by between £6-9 million.  Stock levels will also increase by c.£2 million.”

SuperGroup’s international and wholesale operations are not affected.