Holland & Barrett has proposed a three-year partnership with THG’s tech arm Ingenuity as it undergoes a “multimillion-pound redevelopment of its supply chain”.
The partnership would see THG Ingenuity become the health and wellness retailer’s main ecommerce operational partner in the UK and Ireland.
Holland & Barrett has also announced a multimillion-pound redevelopment of its Burton distribution centre to build “a new state-of-the-art fulfilment system”.
Holland & Barrett’s retail and wholesale fulfilment operations will continue in Burton while the redevelopment work takes place, while its ecommerce fulfilment operation will move to THG Ingenuity.
The retailer said it will be working to “minimise any redundancies” with colleagues able to transfer to THG Ingenuity or seek redeployment to other roles within its Burton centre wherever possible.
Holland & Barrett chief operating officer Anthony Houghton said: “Holland & Barrett’s goal is to be the trusted health and wellness partner for over 100 million people globally by 2026 and our fulfilment operations in Burton are crucial in making sure our stores can serve customers across the country and deliver products around the world.
“We’re growing as a business, with digital sales making a significant volume of our total sales and our current operations are already at 95% capacity. We need to invest now in a new digital outbound system to meet the future demands of our customers.
“Our proposed three-year partnership with THG Ingenuity will mean we can continue to grow at pace with a partner who are industry experts in direct-to-consumer fulfilment, while we invest in transforming our supply chain capabilities.”
THG chief executive Matthew Moulding added: “Holland & Barrett is one of the UK’s largest health and wellness retailers and a major online player. We’re delighted to be supporting their ecommerce ambitions by underpinning their operational efforts for DTC fulfilment and courier management services, directly into their customers’ hands.
“We feel this is a true demonstration of how the THG Ingenuity platform can provide incremental services to established brands, delivering operational excellence, becoming world-class at a fraction of the cost and in a fraction of the time.”