BikeBiz Bicycle and cycling retail news
Birmingham-based Tandem Group has purchased over three acres of land to increase its distribution capabilities with the support of a seven-figure commercial mortgage from HSBC UK.
The new site is adjacent to the Group’s current HQ in Castle Bromwich and, once developed, will generate an additional 80,000 sqft of purpose-built warehouse space.
The development will support the company’s long-term growth plans, as well as accommodating increased stock levels to support the growth in customer demand over the last 12-months. The HSBC UK facility will also support the build and development of the new warehouse.
“Because of the recent change in routine for many of our customers due to the pandemic, we’ve seen a huge increase in demand, particularly across our bike ranges, with stock selling at a rapid rate and many of our lines already pre-ordered to the end of this year,” said Jim Shears, CEO at Tandem Group.
“The funding from HSBC UK means we can increase our distribution capabilities and link our two sites to increase efficiency and enable increased distribution of goods from the warehouses in the future.”
Liz Fuge, HSBC UK area director for East Midlands Corporate Banking, added: “Tandem Group has reported strong growth during what has been a difficult period for many businesses in the retail sector. We are pleased to have been able to support their expansion efforts as the company looks to continue to grow and develop over the coming years.”
The company has already seen an encouraging start to 2021 with year to date revenue in the 11 weeks to 21st March 2021 approximately 90% ahead of the same period last year, despite the pandemic. The company increased its market share in its lightweight Squish junior bikes and also saw significant growth in its e-bikes and e-scooter ranges.
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