Shop Direct development ‘Skygate’ progressing well
WORK on a massive state-ofthe-art fulfilment centre for digital retailer Shop Direct which will create up to 800 jobs is progressing well.
Last May, work started on the 850,000 sq ft building at Segro Logistics Park East Midlands Gateway, at Castle Donington.
Now the external building works at the property, which has been named Skygate, has been completed.
The internal fit-out and installation of new technology is currently underway, with Shop Direct expecting to take possession of the building early next year.
Once operational, the building will bring together all aspects of distribution and returns for Shop Direct’s Very.co.uk and Littlewoods.com retail brands under one roof for the first time.
Around 500 permanent staff are expected to be based at Skygate by March 2021 - supported by and extra 200 to 300 agency staff during peak periods.
According to Shop Direct, recruitment is already underway for a number of technical positions and roles in the management of operations, shifts, teams, stock and inventory.
When completed, Skygate will be served by a rail freight terminal at East Midlands Gateway, with close links to the M1 and East Midlands Airport.
According to Shop Direct, which has annual sales of almost £2 billion, the central UK location of Skygate will bring significant customer benefits, including an extension to the cut-off time for next day delivery from 7pm to midnight and the potential for same-day delivery in the future.
Shop Direct sells more than 1,800 brands, including big name labels and its own exclusive brands. It has four million customers and delivers 49m products every year.
The firm said that Skygate will use the latest automation technology, including sortation, item selection, advanced picking and single and multi-order packaging.
It will allow products to be processed through the fulfilment centre, from order placement to dispatch, in just 30 minutes.
Shop Direct said the new technology, combined with the consolidation of three sites into one fulfilment and returns centre, will contribute an estimated £25m in efficiency savings per year from 2021.
Phil Hackney, chief operating officer at Shop Direct, said: “The completion of Skygate’s external shell is a major milestone in the development of our new fulfilment centre and it’s exciting to see the plans we’ve talked about coming to life.
“The facility will ultimately play a key role in helping us meet the ever-changing needs of our four million customers and will position ourselves for ongoing, sustainable growth in the future.
“Recruitment is moving along at pace, with some colleagues already based at Skygate, and we look forward to welcoming many more in the coming months.”