THG signs major partnership deal with Holland & Barrett as it reports Q4 revenue growth
Health and wellness retailer THG has announced a major new partnership between its Ingenuity platform and Holland & Barrett.
The three-year deal will see THG Ingenuity become H&B’s main ecommerce operational partner in the UK and Ireland by providing fulfilment and courier management services for the retailer’s growing online business.
Subject to the ongoing employee consultation process, Holland & Barrett will use THG’s automated facilities from the second quarter of 2024.
Matthew Moulding, chief executive of THG, 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.”
Anthony Houghton, chief operating officer at Holland & Barrett, added: “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.”
The news came as THG reported that its fourth quarter and full-year performances have been in line with expectations. The group said its revenue rose by 1.1% in its fourth quarter after its beauty division delivered growth of 2.6%. Some of its best performing own brands included Perricone MD and ESPA, as well as retail platform Cult Beauty.
The group’s performance in the UK was particularly strong with revenue growth of around 9%.
Meanwhile, THG’s full year adjusted EBITDA is expected to be above £117 million, with group adjusted EBITDA over 75% higher year-on-year.
Moulding said: “A combination of automation and significant cost initiatives delivered in 2022, in addition to a receding inflationary environment, each played a key role in the group delivering an expected record EBITDA performance after cash-adjusting items during 2023.”
The group is continuing to monitor developments in the Red Sea region but said it anticipates minimal impact on stock availability.