THG’s has struck a fulfilment deal with the UK’s leading wellness retailer Holland & Barrett (H&B) for its automated facilities in Britain.
The Manchester-based firm, formerly The Hut Group, said the three-year deal will see THG Ingenuity become H&B’s main online UK and Ireland operational partner.
THG Ingenuity arm works with third-party brands to sell their products online by providing technology, fulfilment and digital performance solutions.
The company will provide ‘fulfilment and courier management services for H&B’s rapidly scaling digital business’, TGH said.
The firm, formerly The Hut Group, reported that the agreement will be for three years and will see THG Ingenuity become H&B’s main online UK and Ireland operational partner
THG’s shares soared by 8.49 per cent to 72.86p in Tuesday afternoon trading.
The group previous deals with brands such as L’Oreal, Access Corporate Group and PepsiCo will add £175millon worth of incremental merchandise value in the 2024 financial year.
Matthew Moulding, chief executive officer, THG PLC, said: ‘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 through underpinning their operational efforts for D2C 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.’
Anthony Houghton, chief operating officer at of Holland & Barrett, added: ‘Holland & Barrett’s goal is to be the trusted health and wellness partner for over 100 million people globally by 2026.
‘We’re growing as a business, with digital sales making a significant volume of our total sales.
‘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 D2C fulfilment, while we invest in transforming our supply chain capabilities.’
It came as THG also reported a return to revenue growth in the fourth quarter of 2023 as Ingenuity sales jumped 8.1 per cent year-on-year on a constant currency basis to £44.3million over the final three months of the year.
Group continuing revenues were up 1.1 per cent to £597.9million, as 2.6 per cent growth in its beauty arm offset a 3.9 per cent dip in nutrition.
Moulding added: ‘Whilst the economic background remains uncertain there are some optimistic signs, with consumer cost of living pressures set to ease further in 2024. We are confident that the investments and decisions made throughout the year position the Group well to build upon the positive exit momentum.’
Last month, THG acquireskincare brand Biossance from its bankrupt owner for up to $20million (£15.8million).
Moulding’s e-commerce firm bought Biossance from biotechnology group Amyris, which put its beauty brands up for sale in August after filing for Chapter 11 bankruptcy in the US.
Customers have bought approximately $300million of Biossance products since the brand launched in 2015, including at Harrods and Selfridges stores, and on THG’s Lookfantastic and Cult Beauty websites.
The news came just a few months after its acquisition of London-focused business newspaper City AM through a pre-pack administration in July.
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