Palmer & Harvey has officially opened its 14th distribution centre to support the growth of the convenience market within the M25.

The wholesaler has spent £6.5m fitting out the 168,000 sq ft site, in Hemel Hempstead, with a 40,000 sq ft chiller and freezer, as well as 16 loading bays.

The depot, which was acquired by P&H last September, is P&H’s third in the South East, and the fifth to stock chilled and frozen lines.

It will serve 5,200 customers and employ 300 staff. When fully operational, it will stock 12,000 ambient, frozen and chilled lines and dispatch 70 vehicles every day.

P&H’s Fareham and Medway depots, which also serve the South East, were operating at near- full capacity, said Julian Streeter, managing director for operations.

“We’re seeing very large investment in sites in the South East, especially from our multiple grocer customers,” he said. “About two in three convenience stores opened by the multiples are in the South East corner. As a major supplier and supporter of those businesses, we have to respond to that need.”

P&H has steadily built up the number of chilled and frozen products available to independent retailers in recent years. It is adding 20 to 30 new products to its range each month, which has grown from 270 chilled products four years ago to 1,400 today.

“Retailers are realising that even in a forecourt people want to buy bread, milk, bacon and sausages,” said P&H marketing director Richard Hayhoe.

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