Amazon to close Rugeley distribution centre
Amazon has announced the closure of its 1.4 million ft2 distribution centre in Rugeley which is in addition to its announcement in January this year that it was closing three DCs in the UK as part of its global restructuring following its overextension during the pandemic especially in the US.
By Liza Helps, Property Editor Logistics Matters
The online retailer and 3PL said the Rugeley DC has been earmarked for closure but stressed all 1,000 employees would be offered jobs at its new £500 million state of the art DC in Peddimore, or at other Amazon sites. Operations at Peddimore are expected to start in October.
Amazon signed a 15 year lease for the 707,488 ft2 Flair building at G.Park Rugeley at a rent of £3.95 per ft2 in July 2011. The cross-docked speculative warehouse was, at the time of development, the largest in the region, sitting on a 40-acre site located on the A513 in South Staffordshire.
In 2014 Amazon secured planning to double the size of the building by creating a mezzanine floor level and in 2020 secured a £3.2 million rate rebate by successfully arguing that the mezzanine flooring in the warehouse ‘does not count’ as rateable floorspace.
The mega fulfilment centre in Peddimore totals 2.325 million ft2 across a 547,000 ft2 ground and three mezzanine floors. It is being developed by IM Properties. It is targeting BREEAM Excellent and an EPC A rating.
This is Amazon’s latest fulfilment centre in the West Midlands, and will be one of the most-advanced facilities of its type, adding to its base in Coventry and its delivery station in Minworth.
Amazon regional director Neil Travis said: "The West Midlands is an important region for Amazon and I am delighted to confirm our commitment with this £500 million investment in a new state-of-the-art fulfilment centre in Sutton Coldfield.
"The new site will create 400 new jobs for this year, taking our total workforce in the West Midlands to more than 4,000 full and part-time roles, and our investment in the region to more than £3.2 billion since 2010.
"Amazon continues to invest in our buildings and innovative technology to provide our people with some of the most advanced workplaces of their kind in the world, ensuring their wellbeing while delivering for our customers."
Letting agents for IM Properties Peddimore scheme are Avison Young, CBRE and Colliers.
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