Amax Marketing Team
Finance Overview 2021/22 - The Results Are In: Safestore & Big Yellow Self Storage
The financial results are in. And they might shock you...
In a good way, of course. If one thing is certain this year, it’s that Self-Storage businesses are on the rise. And with the big names continually increasing their revenue each year, how are you going to make an impact with your Self-Storage business?
Today, we explore who exactly Safestore and Big Yellow are, how much growth they’ve achieved over the last financial year, and how we can help put your name on the map in a highly competitive space.
Who is Safestore?
We think it is safe to say that everyone knows about Safestore - after all, their notoriously large blue and yellow buildings aren’t exactly discreet!
Founded in 2013, Safestore provides individual units for storing household, business, and student items. Not only do they allow unlimited time for storing your items, but they also offer competitive discounts for customers who choose to stay on a long-term basis.
What countries do they cover?
Safestore is conveniently located all around the United Kingdom. With 130 stores nationwide and 49 of which are in London, they boast more stores and more choices than any other UK storage provider.
To add to their impressive property portfolio, you can also find Safestore located in Paris and Spain.
Who is Big Yellow?
Founded in 2003, Big Yellow provides storage facilities for both short-term and long-term users. Whether you are moving home, travelling for a bit, starting a business, or heading to university, Big Yellow truly welcomes everyone.
In addition to their generously located self-storage units, Big Yellow offers services such as removal and van hires and even flexible office spaces to rent.
What countries do they cover?
You can conveniently find Big Yellow in 106 different locations around the United Kingdom. And you can’t really miss the buildings. The name is a dead giveaway - they are Big and Yellow!
What are we going to talk about today?
Let’s dive deep into the nitty gritty details - the Financial Numbers for 2022 vs 2021.
Overall Safestore Finances
Recently, Safestore released their overall financial data for the full year of 2022 including details dating way back to 2013 - and it’s pretty impressive.
Key Financial Facts
In 2022, Safestore turned over £212.5M - a whopping 13.8% increase from 2021 where they made £186.8M. In 2013, they turned over £96.1M, and by 2022, their revenue increased by 121%, earning an impressive £116.4M within 10 years of business.
It’s interesting to note that, even throughout the pandemic, which lasted around 3 years, their numbers only continued to grow. But what does this mean for Self-Storage businesses?
The numbers laid out by Safestore prove that, even in the midst of a global pandemic, the need for self-storage units never decreases. Even while the world was on hold, people continued to use self-storage facilities for various reasons such as moving home, moving to university, and taking well-earned travel time between studies.
How does this break down with countries they cover?
Let’s break down the total generated revenue per location in 2022:
In its own bracket is London which generated an impressive total of £99.6M
The rest of the UK generated £60.6M
Combined, the UK’s final revenue figure for 2022 was £160.2M
Paris generated £42M
While Spain brought in £3M
It’s safe to assume that, although London is smaller by overall size in comparison to the other locations, it definitely harboured the best results for Self-Storage needs.
Customers & contract length
So, just how long exactly are customers using Safestore’s Self-Storage facilities? Let’s dive in.
23% of customers use the facilities for business purposes in the UK and the average consecutive amount of time spent is 26.4 months.
18% of customers use the facilities for business purposes in Paris and the average consecutive amount of time spent is 32 months.
11% of customers use the facilities for business purposes in Spain and the average consecutive amount of time spent is 31.2 months.
77% of customers use the facilities for business purposes in the UK and the average consecutive amount of time spent is 17.4 months.
82% of customers use the facilities for business purposes in Paris and the average consecutive amount of time spent is 28.7 months.
89% of customers use the facilities for business purposes in Spain and the average consecutive amount of time spent is 23.2 months.
Overall Big Yellow Finances
When Big Yellow released their annual reports, the information was not as in-depth in comparison to Safestore. Let’s dive into what we do know.
Key Financial Facts
Coming in second place for total revenue in 2022 is Big Yellow at a whopping £142M. Boasting a total 12% increase from total revenue in 2021, in the final quarter of 2022, they earned an impressive £48.1M.
By the end of 2022, the average rent value per Self-Storage user totalled £33.99 per month - a 10% increase from the previous year.
It’s no surprise that the increasing figures year-on-year have only motivated both Safestore and Big Yellow to continue expansion in their locations and property portfolio.
Big Yellow's had a weaker third quarter, occupancy dropped by 240,000 square feet (3.8% of the MLA at 31 December 2022) opposed to a loss of 245,000 square feet (4.0% of the MLA at 31 December 2021).
They have likewise experienced a comparable drop in occupancy to the previous year. Move-ins and move-outs were roughly in line with the same period last year during the quarter.
Closing occupancy for all shops was 80.4%, indicating excess space from five recently established stores, a 5.1 percentage point decline from 85.5% previous year.
Like-for-like closing occupancy was 83.6%, a 2.4 percentage point decline from the same period last year.
Closing net achieved rent per square foot for all stores was £32.31, up 10% compared to the same time last year, with average rates up 10% from the same quarter last year, and like-for-like net rent growth reflecting similar rises.
Big Yellow's like-for-like store revenue grew by 6% in the quarter. Year-to-date like-for-like store revenue growth is 7%.
Safestore’s Expansion Plans
In a strategic process to increase revenue, let’s dive into their key highlights for 2022:
In 2022, a combined addition of 263,000 square feet was acquired through additional store openings, acquisitions, and extensions of their current portfolio.
An additional 512,000 square feet was acquired during eleven UK-based projects.
There are six ongoing developments in Barcelona and Madrid amounting to a total of 262,000 square feet.
There are seven Paris projects ongoing amounting to a total of 349,000 square feet.
There are five ongoing projects in the Netherlands sites amounting to a total of 283,000 square feet.
Staples Corner, London for £13.25M! - Source Big Yellow
Big Yellow Expansion Plans
In 2022, Big Yellow acquired a 2.1-acre freehold site in Staples Corner, London for £13.25M. Their intention is to seek planning consent for a 130,000 sq. ft store on the new site, and, following the construction of the store, they hope to transfer the customers from the existing store to the new site.
This move is hoped to achieve a larger customer base while improving the quality of their portfolio.
How can marketing help you grow your Self-Storage business?
There you have it, an impressive financial year for the two biggest Self-Storage businesses in the nation. But how exactly does this help your business?
Regardless of your business’s size or whether you are new to the industry, in time (and patience), such results are possible for everyone. It is no secret that we are living in a digitally-led world; gone are the days of searching through newspapers and local telephone directories for local businesses.
With the right marketing strategy, the right tools, and most importantly, the right team backing you up, you too can achieve incredible results for your Self-Storage business. But how?
Search engine optimisation (SEO) is on the rise. More and more businesses are adapting their strategies to include SEO tactics to get their business on the map and in front of the right people at the right time.
At Amax Marketing, we pride ourselves on delivering bespoke SEO Packages to suit your business needs. Who is your target audience and how are you going to stand out from the big names in the Self-Storage industry? Well, that’s our job.
Pay-per-click (PPC) advertising continues to be a popular avenue for marketing teams across the Self-Storage industry.
A great way to rank #1 on Google search, PPC is an important aspect for everyone’s marketing strategy. With tailored advertising to niche audiences in specific locations, our PPC Package can take your business’s growth to the next level.
Website Design and Development
In recent articles, we’ve discussed just how important your website is for your business and its growth. The doormat to your company, prospective customers landing on your website should have the best user experience to retain their attention and convert into long-standing customers.
At Amax Marketing, we offer exactly this. From initial designs to the final build, why not check out our Website Packages?
The results are clear. Self-Storage businesses, particularly in London, are only continuing to grow financially. Even in the most gruelling conditions of society (aka the pandemic), Self-Storage businesses are seriously blooming.
And with over 80% of consumers turning to Google before committing to a company, how are you going to stand out from your competition?
That’s where Amax Marketing comes in. Our dedicated team of experts are here to help you reach your target audience, with the right tools, and with absolute determination to help you thrive. Why not take a look at our recent work?
Get up the ranks. Get seen. Get growth.