Mexicali Blues plans warehouse space to gain storage, automation
Courtesy / Mexicali Blues
Mexicali Blues plans to build a new warehouse behind its flagship store in Newcastle.
Retailer Mexicali Blues plans to build a new warehouse in Newcastle to gain more storage space for orders, as well as automation and room to grow.
The new 11,520 square foot warehouse will be built on a 7.43-acre wooded lot at 561 Route 1 in Newcastle, behind Mexicali Blues’ flagship store. It will feature parking and a loading area.
The new warehouse will replace the company’s existing space nearby at 27 River Road in Newcastle. While the old space was only slightly smaller, it didn’t have high ceilings or loading bays or other needed warehouse attributes, said Mexicali Blues CEO Topher Mallory.
“We love our current warehouse but we’ve officially grown out of it. This new warehouse will have plenty of growing space,” Mallory said.
Mexicali Blues, which sells hippie and bohemian-style clothes and home goods, purchased the land during the pandemic. The company will break ground shortly and move into the new facility in August or September, Mallory said.
The new warehouse allows for some automation that the previous space did not have room for.
“It was not capable of having a forklift and pallet jacks. We were hand-moving boxes before with a dolly,” Mallory said.
Mexicali Blues had to build its own warehouse because no other space like it was available in the surrounding midcoast.
“There just isn’t space like this in our area,” Mallory. “Real estate has always been an investment in our future.”
The need for more space was driven by the company’s overall growth, including growth in online sales.
“The omni-channel approach we started about 10 years ago really paid off during the pandemic. The pandemic made it clear we had done the right thing,” Mallory said.
Online sales make up more than 25% of Mexicali Blues’ total sales, Mallory said.
“It’s destined to be much more,” he added.
“We’re designing the property with growth and more of a future campus in mind, with walking trails and ways for employees to get more of a break,” Mallory said. “There’s a built in amphitheater in the land that could be used for meetings and a retention pond.”
The 27 River Road property will likely be listed in the coming months and sold.
“It’s a really neat building on the river in Newcastle. It has a higher and better use and a bigger future as something else,” Mallory said. “It has amazing views and proximity to Damariscotta.”
The company, which launched in 1988, has locations in Portland, Raymond, Bangor and Freeport, as well as Newscastle.
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