Friday 21st Oct 2016 - Logistics Manager

Hermes expands Midlands hub

Parcel courier Hermes has taken additional space at Helix Properties’ Merlin Park in Erdington, in the West Midlands, to fulfil increased deliveries in the region.

Hermes had served a valid break notice on its existing premises however has now taken additional space released by entertainment retailer HMV under a new ten-year lease.

HMV has consolidated its distribution from two warehouses on the estate into the single occupancy of a 45,000 sq ft unit on site. HMV’s shop portfolio has dramatically reduced since the company entered administration in January 2013. The company has subsequently been re-aligned and now Merlin Park forms its sole distribution facility, feeding the 90 retained retail outlets.

Hermes has experienced rapid growth in its parcel deliveries operation – prompted by the increased online sales growth across the UK. Adam Leach of Hermes, said the company expects to handle more than 187 million parcels this year and, therefore, is looking for more space to support its growth.

“We plan to double the number of hubs in our network to cope with a 15 per cent increase in parcel volumes this year. Consequently, we are taking further space across the UK and the additional accommodation at Merlin Park is of enormous importance to our business,” he added.

Letting agent Johnson Fellows advised on the complex lease renegotiations. Johnson Fellows also advised the landlords, Helix Property Investors, on the necessary refurbishments required by Hermes to increase their occupation on the estate.