How COVID-19 Has Impacted The Storage Industry
Storage is a recession, resilient business. This is a great benefit in extremely tough economic times and is one of the few industries that have not been affected negatively by the coronavirus pandemic. In 2020 Storage King has outperformed previous year’s sales results despite the lockdown.
3 reasons outlining why the demand for storage has not been negatively affected by Covid
1. Storage is an essential service
Self-storage facilities were allowed to remain open during the lockdown period.
2. Self Storage Move-Ins
Increased
3. Self Storage Move-Outs
Decreased
Why the Difference?
Here’s the theory: Customers experience two types of demand for self-storage:
1. Non-Discretionary:
Created by life events, things people can’t foresee or plan for such as natural disasters, delays in home construction, reversals, changes in financial and living situations, deaths, etc. This type of demand doesn’t really change with varying economic conditions, which is why self-storage seems so stable.
2. Discretionary:
On the other side of the coin is discretionary demand. This involves selling the idea of space, of having an extra closet or room as an extension of the home, for example. This type of demand is also created by renters who are too busy to empty their units or would rather pay another month of rent than deal with their stuff. In a recessionary period, this type of demand slows.
The Demand
South Africa’s saturation level is much lower than for example the U.S., where there are more than 8 square feet of storage space per capita. Much of our demand in S.A. comes from non-discretionary sources.
We have also noticed that in fact, there has been a huge amount of pent-up demand from customers who haven’t been able to access self-storage during the COVID-19 lockdown, and enquiries in August and September have been at a record high.
The Storage King Franchise Opportunity
Storage King has been providing personal and business storage for the past 7 years and are leaders in the portable storage industry.
The franchise opportunity will offer mobile/self-storage solution for personal and business needs.
Storage King provides an easy mobile storage solution where the Storage Pod is brought to the client. They call, we deliver, we pack, we store. If the client needs access to their belongings, that’s easy too. We can bring their Storage Pod back to them or they can come and visit us at our storage facility. It’s quick, convenient and completely reliable; Storage King is the smart storage choice.
Storage King offers storage, packaging, loading and transportation solutions for personal and business needs.
