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House of Fraser to run separate distribution centre for online sales

House of Fraser has extended its contract with DHL Supply Chain as the department store group continues to implement its growth plans this year.

GENERAL MERCHANDISE

House of Fraser to run separate distribution centre for online sales

House of Fraser has extended its contract with DHL Supply Chain as the department store group continues to implement its growth plans this year.

The new deal will include the operation of a separate distribution centre for online sales.

The retailer has signed a deal with the contract logistics specialist worth more than £85 million over five years, in the hope of supporting a growth plan following a surge in sales.

DHL has secured a 245,000 sq ft warehouse, close to the store’s existing distribution centre in Wellingborough which will be fully operational this month. The restructure has created 235 additional jobs across both of the operational sites.

The facility will be used to service House of Fraser stores, while an existing warehouse in Milton Keynes will focus solely on online sales distribution.

Paul Richardson, managing director of DHL Supply Chain’s Fashion Division, said: “We are very pleased to continue our relationship with House of Fraser, particularly as the company expands its online sales footprint.

“The multichannel space is one where our considerable experience will undoubtedly help support House of Fraser’s future growth plans.”

The move follows news earlier this year that House of Farser’s multichannel offerings have increased significantly, with online sales growing 107% year-on-year in its first quarter. 

House of Fraser’s supply chain director Mark Holland said he hoped the new deal would allow the company to concentrate on future innovations for both in-store and online customers.  

"Our lasting partnership with DHL Supply Chain has seen through a seamless transition to our new site in Wellingborough, allowing us to concentrate on delighting our customers in new and innovative ways.The DHL team’s knowledge and experience of our business was a key factor in their appointment to carry out this project,” said Holland.

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