Opinions.

Superdrug looks beyond the high street

May 2016

The latest deal sees Superdrug open a store just outside Wolverhampton’s mainline railway station, between the train and bus stations. The 1,970 sq ft store is on a 10 year lease at £40,000 pa or 7.5% of turnover. Superdrug opened its first transport stores in London’s Victoria and Fenchurch Street stations more than 10 years ago but the Wolverhampton deal is the first on the edge of a station.

Superdrug operates stores in five UK airports with the latest openings in East Midlands and Edinburgh. The airport stores are secured through a head-to-head tender process when airports are redeveloped or extended or existing leases come up for renewal.

GCW has worked with Superdrug to find opportunities in transport hubs for more than 10 years and this brief has now been extended to universities and hospitals. Traditionally both locations have offered only general stores selling premium priced products.

“Transport locations, universities and hospitals, with a large group of captive customers, are all obvious opportunities for a convenience retailer like Superdrug. However the retail market is not very sophisticated and it can take time and effort to secure the best opportunities” says GCW director David Gooch.

Superdrug is looking at smaller units than its normal requirement for 4,000 sq ft stores and is considering units down to 750 sq ft.

Contact david.gooch@gcw.co.uk