Lok'n Store (LOK) increased occupancy of its self-storage sheds by 8.4 per cent in the first half. Chief executive Andrew Jacobs says he's taking market share away from his larger competitors, Safestore (SAFE) and Big Yellow (BYG), who were forced to charge their customers VAT from 1 October. Lok'nStore always applied VAT, so has benefited from the change.
Given the tax-induced price hikes in the market, it is surprising that Lok'n Store's pricing actually weakened by 1.9 per cent over the period. Mr Jacobs says he deliberately chose to prioritise occupancy gains in the months immediately following the VAT change. He sees greater scope to increase prices now that the spring-summer peak season is approaching. The company's estate was 60.4 per cent let at end-January - a seasonal low point for the sector - up from 55.9 per cent a year before.