Birmingham based Tandem Group, a designer, developer and distributor of sports, leisure and mobility products, has purchased over three acres of land to increase its distribution capabilities with the support of a seven-figure commercial mortgage from HSBC UK.
The new site is adjacent to the Group’s current HQ in Castle Bromwich and, once developed, will generate an additional 80,000 sq.ft. of purpose built warehouse space.
The development will support the company’s long-term growth plans, as well as accommodating increased stock levels to support the growth in customer demand over the last 12-months. The HSBC UK facility has not only enabled the purchase of the new site but will support the build and development of the new warehouse.
Since the start of the pandemic, Tandem Group has seen a significant increase in domestic sales as customers’ routines have changed dramatically. The expansion of its warehouse operations will allow the company to quickly and efficiently respond to the influx of orders.
Jim Shears, CEO, at Tandem Group, said: “Because of the recent change in routine for many of our customers due to the pandemic, we’ve seen a huge increase in demand, particularly across our bike ranges, with stock selling at a rapid rate and many of our lines already pre-ordered to the end of this year.
“The funding from HSBC UK means we can increase our distribution capabilities and link our two sites to increase efficiency and enable increased distribution of goods from the warehouses in the future.”
Liz Fuge, HSBC UK Area Director for East Midlands Corporate Banking, added: “Tandem Group has reported strong growth during what has been a difficult period for many businesses in the retail sector. We are pleased to have been able to support their expansion efforts as the company looks to continue to grow and develop over the coming years.”
The company has already seen an encouraging start to 2021 with year to date revenue in the 11 weeks to 21 March 2021 approximately 90% ahead of the same period last year, despite the pandemic. The company increased its market share in its lightweight Squish junior bikes and also saw significant growth in its ebikes and escooter ranges.