Online retailer THG enters into a 10-year partnership with All Beauty and Fragrance Direct owner Maximo Group
- It will initially focus on moving All Beauty and Fragrance Direct to THG’s platform
- It then includes everything from website services to customer delivery
- Partnership to add gross trade value of over £150m to THG’s engineering division
E-commerce retailer THG has entered into an important new partnership with the online retailer behind the sites All Beauty and Fragrance Direct.
The Manchester-based group said the 10-year partnership between Ingenuity, its digital trading solutions division, and Maximo Group will initially focus on moving All Beauty and Fragrance Direct to the THG platform.
It will then include everything from website services and maintenance, warehousing and fulfillment services to delivery services to end customers through THG’s network of global couriers.
The collaboration will initially focus on moving All Beauty and Fragrance Direct to the THG platform
THG, which issued a profit warning in January and announced a review of its loss-making divisions after missing sales targets, said it expects the partnership to add gross trade value “more than” £150m to its Ingenuity division.
The news follows reports this week that THG was looking to cut nearly 200 jobs following the decision to close its OnDemand division.
OnDemand, which enables brands and influencers to offer products under their own name, saw sales plummet and posted losses.
Chief executive, Matthew Molding, said: ‘We are proud to announce our partnership with Maximo.
“This represents the first fruits of our focus on larger corporate clients and underscores our position as the online partner of choice for the prestigious beauty industry.
“I’m thrilled with the progress of our refocused sales force as our pipeline continues to build momentum.”
THG shares jumped 4.4 percent to 66.50 p during midday trading on Thursday.
They are up more than 40 percent since the start of the year, aided by activist investor Kelso who acquired a minority stake in January.
However, the share remains more than 25 per cent lower than a year ago and is a far cry from its peak of 800 pence, which was reached shortly after going public on the London Stock Exchange in September 2020.
Vivek Ganotra, CEO of THG Ingenuity, said the partnership has enhanced the company’s reputation as “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 capitalize on the growing digital channel shift across many beauty categories,” he added.
Maximo Group’s Ian Smith said: “By aligning our digital strategy with THG Ingenuity’s technology and operational capabilities, our customers can benefit from an enhanced shopping experience from site browsing to checkout to delivery.”