E-commerce retailer THG has agreed a major new partnership with the online retailer behind sites All Beauty and Fragrance Direct.
The Manchester-based group said the 10-year partnership between its digital commerce solutions arm, Ingenuity, and Maximo Group will initially focus on moving All Beauty and Fragrance Direct to THG’s platform.
It will then encompass everything from website services and maintenance, warehousing and fulfilment services, and end customer delivery services via THG’s network of global couriers.
The partnership will initially focus on moving All Beauty and Fragrance Direct to THG platform
THG, which in January issued a profit warning and announced a review of its loss-making divisions after missing sales targets, said it expects the partnership to add gross merchandise value ‘in excess’ of £150million to its Ingenuity division.
The news follows reports this week that THG was looking to slash almost 200 jobs as a result of its decision to close down its OnDemand division.
OnDemand, which enables brands and influencers to offer products under their own name, had seen sales tumble and been racking up losses.
Chief executive, Matthew Moulding, said: ‘We are proud to announce our partnership with Maximo.
‘This represents the early fruits of our focus on larger enterprise customers and underlines our position as the online partner of choice for the prestige beauty industry.
‘I am delighted with the progress of our refocused sales team, with our pipeline continuing to build momentum.’
THG shares jumped 4.4 per cent to 66.50p in afternoon trading on Thursday.
They have risen more than 40 per cent since the start of the year, helped by activist investor Kelso snapping up a minority stake in January.
However the stock remains down more than 25 per cent compared to a year ago and a far cry from its peak of 800p, reached shortly after floating on the London Stock Exchange in September 2020.
Vivek Ganotra, chief executive of THG Ingenuity, said the partnership enhanced the company’s reputation for being ‘the go to e-commerce partner for digital transformation in the beauty and wellness categories.
‘Expansion into new international markets is a strategic priority for Maximo Group, with our global distribution network and cross-border expertise enabling its brands to capitalise on the growing digital channel shift across many beauty categories,’ he added.
Ian Smith of Maximo Group said: ‘Aligning our digital strategy with THG Ingenuity’s technology and operational capabilities will enable our customers to benefit from an enhanced shopping experience, from browsing on site, through checkout to delivery.’
