DHL Supply Chain has been awarded a five-year contract worth over 85m with House of Fraser, continuing its seven year partnership with the premium department store group until 2016. The new facility provides House of Fraser with the capacity to support its ambitious growth plans over the next few years and will predominantly focus on store replenishment.
As a key strategic provider, DHL was able to invest capital in support of House of Fraser's growth plan and requirement for high quality warehousing and related infrastructure, to drive an optimised supply chain approach.
DHL Supply Chain's Fashion division will continue to support House of Fraser's growth by providing an end-to-end supply chain management service for its stores from a newly refurbished 245,000 square foot warehousing facility in Wellingborough, Northants. DHL secured the property, close to House of Fraser's existing UK facility, and started fitting it out in April. The Wellingborough site will be fully operational by August, in time for the start of the Christmas peak period.
The existing Milton Keynes site will be used exclusively to fulfill House of Fraser's online offering.
Renowned for its designer brands and exclusive collections, House of Fraser is one of the best-known names on the high street, with 61 store locations across the UK and Ireland, and an annual turnover in excess of 1.25 bn. The retailer's transactional website services 32 countries worldwide and the strong growth of both online sales and house brand merchandise has created the need for an additional warehousing facility.
Mark Holland, Supply Chain Director for House of Fraser said, "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."
Paul Richardson, Managing Director of DHL Supply Chain's Fashion Division added, "We are very pleased to continue our relationship with House of Fraser, particularly as the company expands its online sales footprint. The multi-channel space is one where our considerable experience will undoubtedly help support House of Fraser's future growth plans. We are delighted to play such a key part in expanding the operational efficiency and effectiveness of its logistics operation."
This restructure has created 235 additional jobs across both of the operational sites.