DHL Supply Chain has been awarded a five-year, £85 million (€98 million) distribution contract withBritish retailer House of Fraser to support its multi-channel growth strategy.
Under the agreement, which continues its seven year partnership with the premium departmentstore group until 2016, DHL has established a new logistics facility for House of Fraser’s storefulfillment business in Wellingborough, near Northampton, in central England. A total of 235 newjobs have been created.
The new facility provides House of Fraser with the capacity to support its ambitious growthplans over the next few years and will predominantly focus on store replenishment. As a keystrategic provider, DHL was able to invest capital in support of House of Fraser’s growth plan andrequirement for high quality warehousing and related infrastructure, to drive an optimised supplychain approach.
DHL Supply Chain’s Fashion division will continue to support House of Fraser’s growth byproviding an end-to-end supply chain management service for its stores from a newly refurbished245,000 sq ft (22,761 sqm) warehousing facility in Wellingborough, Northants. DHL secured theproperty, close to House of Fraser’s existing UK facility, and started fitting it out in April. TheWellingborough site will be fully operational by August, in time for the start of the Christmaspeak period.
The existing Milton Keynes site will be used exclusively to fulfill House of Fraser’s onlineoffering in future. In total, 235 additional jobs have been created at the two sites.
Renowned for its designer brands and exclusive collections, House of Fraser is one of thebest-known names on the high street, with 61 store locations across the UK and Ireland, and anannual turnover in excess of £1.25 bn. The retailer’s transactional website services 32 countriesworldwide and the strong growth of both online sales and house brand merchandise has created theneed for an additional warehousing facility.
Mark Holland, Supply Chain Director for House of Fraser, said: “Our lasting partnership withDHL Supply Chain has seen through a seamless transition to our new site in Wellingborough, allowingus to concentrate on delighting our customers in new and innovative ways. The DHL team’s knowledgeand experience of our business was a key factor in their appointment to carry out this project.”
Paul Richardson, Managing Director of DHL Supply Chain’s Fashion Division, added: “We arevery pleased to continue our relationship with House of Fraser, particularly as the company expandsits online sales footprint. The multi-channel space is one where our considerable experience willundoubtedly help support House of Fraser’s future growth plans. We are delighted to play such a keypart in expanding the operational efficiency and effectiveness of its logistics operation.”
