the uk self storage industry 2013
DESCRIPTION
The Boxload team have crunched the numbers to see how the UK self storage industry stacks up (no pun intended!). http://boxload.co.ukTRANSCRIPT
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The UK Self Storage Industry
July 2013
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Snapshot of the Industry
• 830 facilities (2012)– ~+1% vs. 2011
• 30.1mm sq/ft (2012)– ~+1% vs. 2011
• £380mm revenue (2012)– ~+1.2% vs. 2011
• 400 operators (2012)– ~0% vs. 2011
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“The sector is ideal for capital that is looking for long term, sustainable yield.”
-Richard McDougall, Cabot Square Capitalsource: SSAUK 2013
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Economists Optimistic About the UK Economy
source: Oxford Economics
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“We knew the competition would be concerned about VAT, so kept prices steady and went for volume. But we’ll look for opportunities to move prices up.”
-Andrew Jacobs, Lok’nStorestoresource: SSAUK 2013
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Operators Pessimistic About Profits
source: Deloitte / SSA
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“With the imposition of VAT the industry has demonstrated remarkable resilience. It is a speed bump, not a brick wall.”
-Peter Gowers, Safestoresource: SSAUK 2013
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Number of New Facilities Opened
source: Deloitte / SSA
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“We would consider expansion but within our existing stores and sites first.”
-Susie Fabre, A&A Self Storagesource: SSAUK 2013
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Available Space for Expansion
source: Deloitte / SSA
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“After what has seemed like a very long wait we are finally starting to see what looks like the beginning of a recovery in the housing market.”
-Peter Bolton King, RICSsource: RICS 2013
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Housing Market Showing Signs of Recovery
source: HMRC
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“Our fastest growing segment by some margin is the large commercial customers who want to find solutions.”
-Peter Gowers, Safestoresource: SSA UK 2013
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Business Users Growing Year-On-Year
source: Deloitte / SSA
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“We are chasing occupancy more than room rates this year.”
-Robin Greenwood, Storage Kingsource: SSA UK 2013
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Occupancy Rates Falling in Most Regions
source: Deloitte / SSA
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”Most of our private customers are new to self storage, and having friendly, knowledgeable is staff is vital maximise conversions and to give us an edge over the larger players."
-Alistair Lothian, Len Lothiansource: SSA UK 2013
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Smaller Companies Still Prospering
Source: Deloitte / SSAUK
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“The future of the industry is high quality, built-for-purpose sites with a focus on a service led, retails experience for the residential and business customer.”
-Richard McDougall, Cabot Square Capitalsource: SSAUK Survey 2013
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Revenue Streams Diversifying
Source: Deloitte / SSAUK
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”You no longer need a Triple-A location; a B location with a reasonable prominence is now acceptable […] due to the increase in the number of enquires that can be generated through the web."
-Robin Greenwood, Storage Kingsource: SSA UK 2013
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Lead Generation Origin
Source: Deloitte / SSAUK
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”We have to spend a disproportionate amount of money to get on the first page of web search results, so promoting a strong company brand is very important in this battle."
-Alistair Lothian, Len Lothiansource: SSA UK 2013
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Customer Conversion Channels
Source: Deloitte / SSAUK
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”70% of customers have not used self storage before, and we estimate that only 10% of UK adults have used it and have ‘stay awareness’.”
-Jimmy Gibson, Big Yellow Self Storagesource: SSA UK 2013
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Customer Churn Rates
Source: Deloitte / SSAUK
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"Of the 250,000 people in the UK who now use self-storage, many do not want to have to worry about arranging their own pick-up and drop-off transport."
- Flexistore spokespersonsource: Reuters Feb 2013
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Operator Landscape
NationalRegional
Traditional
Innovative
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-Jimmy Gibson, Big Yellow Self Storagesource: SSA UK 2013
"The challenge for the industry is to grow good awareness for the product amongst domestic and business users.”
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Innovators
• Container storage – StoreBox…
• Mail storage – Boxload, LoveSpace…
• Pickup / delivery – Flexistore…