Shares with Clipper Logistics rose by more than two per cent after it announced an agreement with John Lewis to establish a joint venture company to expand its provision of multi-user Click & Collect services to address the needs of retailers in the rapidly growing online marketplace.
The Leeds-based provider of value-added logistics solutions and e-fulfilment to the retail sector said it had identified a need for a dedicated next-day delivery service into high street stores which will be provided by the new joint venture.
Developed by Clipper following extensive research it includes timed delivery to store in a retailer-friendly format.
The Gelderd Road-based firm said it can now integrate with retailers’ customer service systems to provide customer and store updates, text messaging to retailers’ end customers and deliver into store in roll cages with clear “parent and child” relationships between the cage and the parcel in order to facilitate rapid parcel selection.
The service will be operated by Clipper with John Lewis providing expertise and insight into the retail market. John Lewis will also be a key customer of the service. The initial trial commenced in the fourth quarter of 2015, and involved a service for John Lewis’s Click & Collect deliveries into 120 Waitrose stores.
Following the success of this trial, the service has recently been expanded to over 300 Waitrose stores, providing nationwide coverage.
The latest deal caps off a highly successful year for the firm, founded by Leeds businessman Steve Parkin.
Clipper floated two years ago and boosted its profit levels by 41 per cent in its last full year of trading.
It also works with other blue chip retailers such as Zara and SuperGroup, with the new system set to be extended to other retailers’ stores in the coming months.
Mr Parkin, executive chairman of Clipper, said: “This is a truly ground-breaking development which will revolutionise the provision of Click & Collect services to the High Street in Britain.
“We are delighted to have worked closely with our partners, John Lewis, to research and develop this unique service proposition which will address directly the challenges posed to retailers in this rapidly growing area of activity. The service is another demonstration of Clipper’s ability to rapidly solve challenges posed to retailers, using our unparalleled understanding of the retail sector”
Under the terms of the Joint Venture agreement, funding will be provided on a 50/50 basis by John Lewis and Clipper, and profits will be shared between the parties on the same basis.
As of April 30 this year the gross assets stood at £3.4 million.
Dino Rocos, Operations Director of John Lewis, said: “Click & Collect continues to be our fastest-growing delivery channel, with deliveries to Waitrose making up the majority of those sales.
“This joint venture will provide a much more tailored service so that Click & Collect orders which reach Waitrose branches are handled in a more efficient way.
“It will enable us to continue to give an outstanding service to our customers, who love this easy and convenient delivery option.”