9th Jun 2014 07:02
LONDON (Alliance News) - Clipper Logistics PLC said Monday it has been awarded a five-year contract extension with Tesco PLC which will include the development of additional services to support the growth of the retailer's online clothing business.
Clipper Logistics, a value-added logistics services provider for the retail sector, said that the contract extension with the supermarket builds on its existing e-fulfilment solutions for the retailer which has been in operation since 2009.
The contract will be serviced from a 400,000 square foot facility in Daventry, said Clipper, in order to match Tesco's growth plans, creating up to 200 jobs in the short term, with significant potential for further employment opportunities in the longer term as the contract progresses.
The new Daventry distribution site will be operated on a shared user basis, a model that allows multiple retailers of varying sizes to spread cost, technology and skills across more than one contract, said the company, adding that the service will include "added value pre-retail services, which will ensure clothing is made retail ready and available for customer delivery, in a timely manner."
The first stock is expected to arrive at the Daventry site in August 2014 as the contract is introduced on a phased basis to ensure minimum disruption.
Clipper Logistics began unconditional dealings in its shares on the main market in London Wednesday and is focused on increasing expansion in the internet shopping market.
"We are delighted to have been awarded this contract extension so soon after our successful listing on the London Stock Exchange... We'll be looking to further improve the Tesco clothing supply chain in order to remove cost, complexity and risk from their business," said Steve Parkin, Executive Chairman of Clipper.
Last week Tesco reported a sharp drop in sales in its first quarter as it was hit hard by deep price cuts across the business and by the acceleration of its store refit programme, while warning of more UK sales declines in coming quarters.
Shares in Clipper Logistics were quoted at 125 pence per share Monday morning, untraded.
By Alice Attwood; [email protected]; @AliceAtAlliance
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