Tesco online has signed a five-year extension with logistics company Clipper to manage the supermarket’s growing online fashion business.
Clipper, which has worked with Tesco’s online clothing arm since 2009, will provide additional services to ensure clothing is made “retail ready” and immediately available for customer delivery.
The contract extension will be serviced from a new 400,000 sq ft distribution centre in Daventry, Northamptonshire, and will create an additional 200 jobs in the short term.
The centre will be operated on a shared user basis which allows multiple retailers of varying sizes to spread cost, technology and skills across more than one contract.
The site will undergo a refit in order to prepare for the new contract, ahead of the first stock delivery in August.
Clipper executive chairman Steve Parkin said the contract extension was an “excellent example” of Clipper’s commitment to the growth of the business following its IPO last month.