DHL warehousing and delivery deal with Loop set to expand under Tesco pilot

DHL’s deal to provide warehousing, fulfilment and distribution to Loop is set to grow after the reusable packaging company expanded its partnership with supermarket giant Tesco this week.

Loop provides a circular model which allows Tesco customers to buy well-known brands in reusable, returnable packaging. Until this week the goods were only available online as part of a pilot scheme, launched last year, which saw the goods delivered to their homes by DHL and the used containers dropped off at collection points across the UK or picked up by DHL, either on request or at the next delivery.

DHL also provides Loop with warehousing, fulfilment and returned deposit scanning services as well as delivering cleaned containers back to participating brands.

This week Tesco announced it is moving to a second phase of the pilot programme offering the service in 10 large Tesco stores in the east of England. If the pilot is successful it could be rolled out across hundreds of Tesco stores across the UK.

Several major companies have signed up for the trial including Heinz Coca-Cola, Danone, Nivea, REN Clean Skincare, Love Beauty and Planet, Unilever, Molton Brown, Finish, Bulldog, and BrewDog.

Launching the programme, Tesco chief executive Dave Lewis said the partnership had been “designed to test a new way of helping customers use less plastic and explore the exciting potential of reuse”.

“We will learn what works at scale as we develop plans with Loop to introduce reusable packaging into our business,” he said.