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Gear4music: 'European distribution centres will make us well placed for any Brexit eventuality'

Laura  Barnes
Gear4music: 'European distribution centres will make us well placed for any Brexit eventuality'

UK online retailer Gear4music has announced a trading update for the six months to 31st August 2016, as well as plans for new distribution centres in Europe.

The business revealed very strong sales throughout the period, particularly in Europe.

UK sales were up 44% and European sales increased by 169%. Active customer numbers also increased by 45% from 187,000 to 271,000.

“We are very pleased to have sustained the strong sales momentum announced on 29 July and achieved 73% like-for-like revenue growth during the half year, and overall profitability in the period will be ahead of management expectations as we head into the key second half trading period,” said Gear4music CEO Andrew Wass.
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“This impressive growth reflects our focus on continual investment in and improvement of our product range, websites, systems and overall customer proposition, and the commitment of our hard working team.”

Wass revealed that the firm has established its first European distribution centre. It will be located in Sweden and expected to be operational from November this year.

“This centre will improve our delivery times to customers throughout much of Scandinavia, whilst at the same time reducing delivery costs in those territories. We are also working towards opening a second European hub before the end of this calendar year,” said Wass.

“These first two distribution hubs will not only transform our European customer proposition, but also increase the overall capacity of our business to deliver over £100m revenues.

“This additional distribution capability will also be augmented with localisation of some purchasing and merchandising functions, ensuring the business is well placed for any Brexit eventuality.”

Tags: Retail , gear4music , brexit

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