Footasylum has embarked on an ambitious expansion strategy, backed by a £35 million green loan from HSBC UK.
- The funding will support the opening of new stores in Aberdeen, Warrington, and Doncaster, with more planned in Rotherham and Wrexham.
- Footasylum’s Merry Hill store will triple in size, creating over 100 new jobs across the UK.
- Sustainability goals are integral to the loan structure, with potential interest rate reductions linked to environmental performance.
- The company’s environmental initiatives include carbon net zero targets and a commitment to offsetting emissions.
Footasylum has secured a significant £35 million funding package from HSBC UK, designed to accelerate its growth both domestically and internationally. Integrating sustainability into its financial strategy, the loan includes provisions for a sustainability improvement loan (SIL).
The retailer plans to utilise this funding to expand its UK store footprint, starting with new store launches in Aberdeen, Warrington, and Doncaster. Subsequently, stores are set to open in Rotherham and Wrexham later this year. A substantial expansion of their Merry Hill store will result in it being trebled in size, contributing to the creation of more than 100 new jobs across the country.
Notably, the funding arrangement is tied to Footasylum’s advancement in sustainability. By improving its sustainability rating in accordance with pre-determined targets, the company could benefit from reduced interest rates on the SIL. HSBC UK will monitor Footasylum’s progress annually using EcoVadis ESG ratings.
Footasylum has established firm environmental objectives, pledging to achieve carbon net zero for scope 1 and 2 emissions by 2030, and scope 3 by 2040. Since 2020, the company has been working to offset its carbon emissions and aims to transition to a fully electric or hybrid fleet by 2025, with a majority of its logistics already powered by biodiesel.
Supporting its sustainability efforts, Footasylum’s carrier bags are manufactured from 100% recycled materials, and the company is involved in ‘Make it Wild’, a tree-planting partnership. Moreover, the acquired backing since merging with Aurelius in 2022 has seen new stores open and expansions in locations such as Oxford Street in London.
HSBC UK’s support extends beyond physical expansion to enhancing Footasylum’s technological capabilities. The deployment of a new modular, mobile-first omnichannel retail solution aims to establish a digital-first customer journey. Additionally, the funding assists in developing Footasylum’s exclusive brands and fortifying collaborations with influencer partnerships crucial to its content marketing.
Footasylum’s strategic expansion and robust sustainability initiatives position it strongly for future growth and environmental responsibility.
