The UK Self Storage Industry 2013
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The UK Self Storage Industry July 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.uk
Transcript of The UK Self Storage Industry 2013
The UK Self Storage Industry
July 2013
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
“The sector is ideal for capital that is looking for long term, sustainable yield.”
-Richard McDougall, Cabot Square Capitalsource: SSAUK 2013
Economists Optimistic About the UK Economy
source: Oxford Economics
“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
Operators Pessimistic About Profits
source: Deloitte / SSA
“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
Number of New Facilities Opened
source: Deloitte / SSA
“We would consider expansion but within our existing stores and sites first.”
-Susie Fabre, A&A Self Storagesource: SSAUK 2013
Available Space for Expansion
source: Deloitte / SSA
“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
Housing Market Showing Signs of Recovery
source: HMRC
“Our fastest growing segment by some margin is the large commercial customers who want to find solutions.”
-Peter Gowers, Safestoresource: SSA UK 2013
Business Users Growing Year-On-Year
source: Deloitte / SSA
“We are chasing occupancy more than room rates this year.”
-Robin Greenwood, Storage Kingsource: SSA UK 2013
Occupancy Rates Falling in Most Regions
source: Deloitte / SSA
”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
Smaller Companies Still Prospering
Source: Deloitte / SSAUK
“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
Revenue Streams Diversifying
Source: Deloitte / SSAUK
”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
Lead Generation Origin
Source: Deloitte / SSAUK
”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
Customer Conversion Channels
Source: Deloitte / SSAUK
”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
Customer Churn Rates
Source: Deloitte / SSAUK
"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
Operator Landscape
NationalRegional
Traditional
Innovative
-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.”
Innovators
• Container storage – StoreBox…
• Mail storage – Boxload, LoveSpace…
• Pickup / delivery – Flexistore…
