The Bookseller.com

7th September 2008

Waterstone's to 'phase' in hub

01.07.08 Graeme Neill

Waterstone's has revealed that the full implementation of its new supply chain hub is to be delayed after deciding to "phase" in stores over its next financial year as part of a plan to "de-risk" the change.

The bookselling chain had originally planned to begin supplying all of its 313 stores, as well as website orders, from September 2008 from its centralised hub in Burton-Upon-Trent. However, in its full-year results released this morning, it said "the transition from direct-to-store deliveries to the book hub has been de-risked by the phased take on of stores, which will be completed by the end of the new financial year". It added that: "Consequently, the delivery of cost savings from this initiative will be deferred until 2009/10."

Managing director Gerry Johnson said that a proportion of its stores would be fulfilled by the book hub before Christmas but he refused to discuss either the timescale or how many stores would be supplied. However, he added that the new supply chain would be rolled out to the "majority" of the chain in the new year.

He told The Bookseller: "We are running a little bit behind than expected. It's entirely down to a desire to test it to destruction. We are aware of the importance of getting it right and not taking any risks with it."

waterstone's gerry johnson HMV Graeme Neill Home distribution hub

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