SportsDirect plans to move out of Shirebrook!
A few days ago, I observed a casual conversation on the Internet about Shirebrook. One of the participants in the discussion stated that hard times are coming for our town as the owner of the Sportsdirect brand (Fraser Group) is considering moving out of Shirebrook.
She even said that Fraser Group had already started a public consultation before submitting a planning application for a new HQ near Coventry. At first, I thought this was a joke. Then, after reading a few more posts, I thought it was a just a rumour. Finally, after a few more postings, I concluded that the matter is much more severe than it looks at first glance.
RUMOR HAS IT…
It wasn’t until I started digging into the matter that I found out that on 29 September 2022, the fact of the Fraser Group’s intention to build a new HQ became public knowledge thanks to an online publication. This information was published on several websites simultaneously. At this point, it is impossible to say otherwise: Fraser Group is considering moving out of Shirebrook.
To tell you the truth, this news fell on me like a bolt out of the blue. When I ran for the BDC seat, residents didn’t go to the polls and same.old.labour won. As usual, they do everything to ensure residents know as little as possible. I practically never talk to anyone from the BDC, so the fact that the BDC knew about this beforehand surprised me. The rumour seemed ridiculous to me- SportDirect has invested tens of millions of pounds in Shirebrook, so why would they move from there?
Until I read this article, I did not believe SportsDirect would ever disappear from the Shirebrook map. But, sadly, I have to confirm that such a plan exists and is quite real. You can even see the architect’s sketch of the proposed site.
THE ARTICLE HAS IT…
As I wrote in the introduction– when a link to an article came up in conversation confirming everything that was supposedly being whispered about in the corridors of the BDC, I thought it was something that would be worth covering on S247. So I have included a link to the said article at the end. To add a bit of variety to this article, I have also downloaded additional architectural sketches from a site where residents in the Ansty area can leave feedback. I have also included a link to the site at the end; the sketch files are huge, over 100MB, so there are many more drawings and information than I have included. In addition to the warehouses, Fraser plans to build a new HQ, retail centre, leisure centre, swimming pool, hotel and many other sports-related facilities.
THEY HAVE A TOTAL ADVANTAGE OVER US
According to the documents, the total cost of building the ‘Fraser campus’ will be £300 million. This amount may seem huge. However, when you are inquisitive (I am) and check how much the Fraser Group earns annually, you will understand that money is not the issue. It is about something else. What is more important about Ansty is what Shirebrook does not have:
- deep labour market.
- Excellent transport links (proximity to the M6 and also the M69 and M1).
- Proximity to large population centres (Coventry 345,000 residents; Rugby 114,400)
- more land to develop.
As you can see from the map above, the area has an unemployment problem, so Fraser Group would have no trouble finding warehouse workers/pickers/drivers.
REALITY CHECK
I know people living since birth in Shirebrook are very uncritical of what happens here. I have personally experienced that the slightest attempt at criticism, even constructive criticism, is met with hatred, contempt and name-calling. However, I stand by my position that I should treat my readers like adults, not children, to whom I should tell beautiful lies just to buy their gratitude and sympathy. Therefore, if you are a snowflake and can’t stand it when someone tells you the truth to your face, then I recommend you don’t read the following paragraphs. Instead, look at the pictures and return to living in a world of fairy tales and fantasy.
The reality is- Shirebrook is the end of the world. A complete outback. A backwater. This is the thing I like best about our town- no big city hustle and bustle; no big retail centres; no traffic jams; no rumble of the nearby motorway or expressway; no nightclubs regularly delivering drunks to the streets and the problems associated with them. But, unfortunately, what is an advantage for me is a disadvantage for many.
The truth is that there is nothing in Shirebrook to attract highly skilled, talented people to work in what is a business operating in a deadly competitive market. In this day and age, to be a giant in the retail world is effectively to be a dinosaur looking up at a sky lit up by an approaching comet. That comet is, of course, the Internet.
To grow and remain competitive, Fraser needs to employ the best people, have access to a deep labour market, have space to grow and have convenient transport links. Shirebrook offers nothing on this list. Coventry/Ansty- quite the opposite.
SHIREBROOK FULFILLED ITS ROLE
As long as the key element for the company’s growth was cheap labour in the central warehouse, the whole scheme of operating from tiny Shirebrook, located in a remote, provincial location, worked perfectly. However, the company has grown so much in the last decade that today this seemingly large warehouse is too small. In addition, today’s retailers must operate simultaneously in brick-and-mortar shops and on the Internet. For this, you need educated people specialising in IT, design, advertising, experienced managers and directors. Such people will not want to live and work in a place that is fifty miles away from theatres, art galleries, decent restaurants and nightlife. Such people will not settle for a yoga session at the Leisure Centre and schools that OFSTED describes as “required improvement”. Such people demand more from life.
IT’S INEVITABLE – THAT’S THEIR ‘MO’.
When SD was founded, its main base was in Dunstable. When it became apparent that business was going well, it was quickly decided to move a little north to have the whole country covered, not just London and the south. As soon as the first warehouse was put up in Shirebrook- they started to move operations. After a few years, there was no trace of SD left in Dunstable. It was the same when SD took over a failing competitor who had headquarters in Wigan(today, I can’t even remember their name). The stock was moved out of their warehouse and moved to Shirebrook, the best shops changed their signage, the others closed, and nothing was left of the once great company in Wigan but memories.
This happens every time SD takes over a company: all operations and inventory are successively and systematically transferred to Shirebrook. That is Sportsdirect’s MO, and changing the banner to Fraser Group has not changed anything. You may not like it, and you may lament the people who lost their jobs because of SD’s predatory style of operation, but this is a business, not a Labour Party conference where wishful thinking, dreaming and a disconnect from reality rule.
No one can deny SD’s effectiveness. Mike Ashley built a giant from the ground up when everyone told the Brits that they had lost that ‘something’ that made them the best traders and businessmen in the world for centuries. By focusing on cost-cutting, cheap labour and centralising its distribution network, SD saves mountains of money, which it can use for growth, acquisitions of weaker companies or investment. In addition, by offering products at a decent level of quality, they have won the hearts of their customers, which only strengthens their position – even if they do not spend as much on advertising as other companies. A side effect of this strategy is the creation of more and more jobs. The Ansty Campus alone promises to create 7,500 jobs. Can Shirebrook compete with this? “Our” warehouse hires between 3000 and 4000 people, and its already at capacity.
FRASER GROUP OFFICIAL STANDING
Of course, Fraser Group is reassuring for now. An email sent to employees emphasises that, as yet, no decisions have been made about Shirebrook’s future. However, analysing the company’s past behaviour is enough to notice a pattern and predict the future. I want to be wrong, but in my opinion, the fate of the Shirebrook warehouse is already sealed. The reassuring emails are that and nothing more – reassuring emails.
The lease of the warehouses’ land ends in 2034, and it seems to me that this will be the end of Mike Ashley’s adventure with Shirebrook. I stress- this is just my hypothesis, for which I have nothing to back it up except the history of the company and an analysis of the advantages the Ansty site offers. If I were Mike Ashley- I would not hesitate for a moment. Ansty offers almost infinitely more potential for growth. Business is business.
WE NEED TO ASK OURSELVES- WHAT IS THE FUTURE FOR SHIREBROOK???
However, it is worth asking – what will happen to Shirebrook if, indeed, Fraser Group is granted planning permission for a new campus in Warwickshire? What will happen to the warehouse built here? What will happen to the people who, tying their future to Fraser Group, have invested their life savings here? What will happen to house prices and the rental market? How will this affect the operation and financial health of the Council?
I won’t be discussing these topics for now – a public consultation is underway in Ansty. As it falls on my day off, I decided to go there and bring S247 readers some fresh news straight from the source. There is still plenty of time until 2034, so I will probably return to this topic more than once. I will report on my trip to Ansty before the end of this month.
Link to article:
https://www.business-live.co.uk/commercial-property/frasers-group-set-create-7500-25134339
Link to consultation website:
https://www.j2-ansty.co.uk
Sylwester Zwierzynski info@shirebrook247.com
