Waitrose confirms new Southwestern distribution hub as part of £1 billion investment
Supermarket chain Waitrose has confirmed that it is opening a new distribution hub in the Southwest as it announces a £1 billion investment in stores and supply chain processes across the UK.
By Liza Helps, Property Editor, Logistics Matters
THE RETAILER has committed to investing £1 billion over several years into growing the brand and improving its 317 shops across the country and as part of this plan completed a 15 lease with a tenants only break at year 10 in July last year for developer Mountpark’s 360,926 ft2 Bristol 360 warehouse in Avonmouth.
The property was let with 5-yearly upwards only rent reviews to the higher of OMV (uncapped) or CPI (2-4% pa) And currently has a passing rent of £3,122,009.90 per annum, reflecting £8.65 per ft2. In addition, Waitrose has an option to renew the lease for a further 15 years without a break.
The facility will serve as the retailer’s fifth regional distribution centre and its first in the South West. Set to be run by DHL the facility will create over 550 new jobs; 480 warehouse colleagues and 80 drivers in spring, ahead of the site opening in early 2027.
The new distribution centre will make deliveries more efficient for the 50 existing shops in the region, while supporting future expansion.
Waitrose’s Supply Chain Director Alison Maffin, said: “As we grow, it’s essential that our supply chain grows with us. This new site strengthens our network, ensuring consistent service for our customers and creating over 550 jobs in a state-of-the-art facility. DHL shares our commitment to sustainable logistics, making them the perfect partner for this next phase of our expansion.”
The new building, which has a roof made of 1,200 solar panels, energy efficient systems, extensive natural light, landscaped gardens and a roof terrace has been rated BREEAM ‘Outstanding’ making it the retailer’s most sustainable site.
In addition, Waitrose estimates that the site will help reduce annual mileage within its supply chain by 2,225 tonnes of CO2 per year, which is the equivalent of taking over 1,500 vehicles off the road annually. Lorries will refuel at the world’s largest biomethane refuelling station, which is opposite the warehouse.
Designed with sustainability and employee wellbeing in mind, Mountpark Bristol 360 includes features such as a roof terrace, landscaped gardens, and extensive ribbon glazing to maximise natural light to the warehouse marshalling areas.
Part of the £1 billion investment has involved investing in AI and automation, which among other things will help to reduce manual processes for work across the supply chain.
Letting agents on Mountpark 360 were DTRE, JLL and Colliers.
The investment of the property is being handled by Cushman & Wakefield seeking £54.25 million on a net initial yield of 5.65%.
