British e-commerce company THG has announced a new fulfilment partnership with Holland and Barrett.

From the second quarter of the year, subject to approval, the health and wellness brand will use THG’s automated facilities in the UK.

The three-year deal will see THG Ingenuity, which provides an end-to-end e-commerce platform, become the retailer’s main online shopping operational partner, providing the company with fulfilment and courier management services for its growing digital business.

"We're growing as a business, with digital sales making a significant volume of our total sales," said Anthony Houghton, chief operating officer, Holland & Barrett. "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 move comes as THG announces its best quarterly performance of 2023, with the final few months of the year seeing revenue up by 1.1 per cent.

The company also signed a number of other retail brands last year, including L’Oréal. Ingenuity is now managing the direct-to-consumer (D2C) activities for two of the cosmetic retailer's luxury division brands in North America.

The deal between THG and Holland & Barrett is expected to add £175 million of incremental GMV to Ingenuity's operations and technology platform during 2024.

"Holland & Barrett is one of the UK's largest health and wellness retailers, and a major online player," said Matthew Moulding, chief executive, THG. "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."

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