The founder of Hyperama is designing a prototype compact C& C facility. John Wood reports
Hyperama founder Mark Johal has renewed growth plans for his cash and carry business which could lead to a new generation of depots.
Johal admits other parts of his business empire have attracted most of his attention over the past two years, but he is now developing plans for a new compact generation of cash and carries.
“The days of the 150,000 sq ft depot are over,” he says, even though his two depots, at Nottingham and West
Bromwich, are 100,000 sq ft and 150,000 sq ft respectively.
He believes there is too much empty unproductive space in the large depots and is convinced that everything a customer needs can be contained within 40,000-50,000 sq ft without compromising range, availability or the “retail” standard shopping environment Hyperama is renowned for.
Johal qualified as a civil engineer before his business career began and is using his skills to plan the layout for a prototype depot, going through it shelf by shelf as he works out how to fit all the required elements into the smaller format.
He says the first depot will be opened in the Midlands, possibly as early as June or July next year. “The design of this depot will be critical,” says Johal, “but if it works we will look to roll out a number of depots fairly quickly after that.”
While Johal thinks the economics of large cash and carries are less attractive, his two existing depots will still have a roll to play in his new project, as will the fleet of trucks owned by his JK Foods business which delivers ethnic foods to wholesalers across the UK. By day, the big depots will continue in business as cash and carries, but by night they will act as supply hubs, with orders picked and then despatched to the new depots using the lorry fleet.
Johal is confident that availability at the new depots can be maintained using the lastest automatic replenishment systems and says faster stock turnover through the smaller depots will boost margins.
Johal’s renewed focus on his cash and carry business began earlier this year when he recruited two new senior executives.
Robert Lowe rejoined the business - he was the first manager of the Nottingham depot - as MD, and Myron Rybczak was appointed financial director.
Lowe says the current Hyperama depots were five years ahead of the competition - the bright retail-style ambience has since been copied by many competitors - and the new project could be similarly innovative.
Hyperama founder Mark Johal has renewed growth plans for his cash and carry business which could lead to a new generation of depots.
Johal admits other parts of his business empire have attracted most of his attention over the past two years, but he is now developing plans for a new compact generation of cash and carries.
“The days of the 150,000 sq ft depot are over,” he says, even though his two depots, at Nottingham and West
Bromwich, are 100,000 sq ft and 150,000 sq ft respectively.
He believes there is too much empty unproductive space in the large depots and is convinced that everything a customer needs can be contained within 40,000-50,000 sq ft without compromising range, availability or the “retail” standard shopping environment Hyperama is renowned for.
Johal qualified as a civil engineer before his business career began and is using his skills to plan the layout for a prototype depot, going through it shelf by shelf as he works out how to fit all the required elements into the smaller format.
He says the first depot will be opened in the Midlands, possibly as early as June or July next year. “The design of this depot will be critical,” says Johal, “but if it works we will look to roll out a number of depots fairly quickly after that.”
While Johal thinks the economics of large cash and carries are less attractive, his two existing depots will still have a roll to play in his new project, as will the fleet of trucks owned by his JK Foods business which delivers ethnic foods to wholesalers across the UK. By day, the big depots will continue in business as cash and carries, but by night they will act as supply hubs, with orders picked and then despatched to the new depots using the lorry fleet.
Johal is confident that availability at the new depots can be maintained using the lastest automatic replenishment systems and says faster stock turnover through the smaller depots will boost margins.
Johal’s renewed focus on his cash and carry business began earlier this year when he recruited two new senior executives.
Robert Lowe rejoined the business - he was the first manager of the Nottingham depot - as MD, and Myron Rybczak was appointed financial director.
Lowe says the current Hyperama depots were five years ahead of the competition - the bright retail-style ambience has since been copied by many competitors - and the new project could be similarly innovative.
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