Switzerland-based Utopia Music is to open a circa 270,000 sq ft warehouse in Oxfordshire as part of a £100m deal with supply chain specialist DP World.
The distribution centre, in Bicester, will support Utopia’s expansion drive on the back of demand for physical music and video formats.
The new facility will join Utopia’s other warehouses in Dartford, operated by Proper Music Group. It will feature technologically advanced solutions such as high-density storage and robotic product transfers, to enable the distribution of more than 30m units a year across the UK and export markets.
As part of the deal, stock will be moved to the new facility from UDS’s existing warehouse in Aylesbury, Buckinghamshire – which it inherited from its acquisition of Cinram in 2022 – in the summer.
Utopia and DP World pointed to “ongoing resilience” in the UK’s physical music and video market, citing research that shows 17.3m physical albums were sold in 2022, 67.1% of which were CDs. The physical video market generated £209m in UK revenue last year.
Drew Hill, vice president of distribution services at Utopia Music, said the business was “doubling down” on its commitment to physical music, while it shows “its resilience over and over again”.
Rashid Abdulla, chief executive and managing director Europe at DP World, said the company was working with Utopia in “a fast-growing industry”. “This contract is a significant step in our journey as we expand our logistics offerings in the UK,” he added.
“We see this as a great opportunity to realise our investment in the best technological innovations to build agile, streamlined, and sustainable supply chain solutions that can respond to ever-changing challenges while minimising costs and reducing environmental impact.”
Kim Bayley, chief executive at the Entertainment Retailers Association, welcomed the move on behalf of the UK’s more than 3,000 physical entertainment stores and home delivery retailers.
“Despite the growth of streaming, physical formats are still an essential element if you want to have a hit album or video,” she said.
“We welcome this substantial vote of confidence in entertainment’s physical future. Utopia have proven themselves to be collaborative partners. Such a massive move is never without risk, but we will be working closely with all sides to attempt to minimise any teething problems.”
To send feedback, e-mail pui-guan.man@eg.co.uk or tweet @PuiGuanM or @EGPropertyNews
