Clipper Logistics is to replace DHL Supply Chain as Arcadia’s store delivery partner.

The contract was put out to tender after DHL declined to renew the deal with Arcadia, as part of the German group’s wider strategy to withdraw from low margin, high risk sectors such as retail.

In a Stock Exchange announcement today (16 June) Clipper Logistics revealed that it will begin TUPE consultations “once an appropriate process is agreed between Clipper and the incumbent”.

Once finalised, the new contract will see Clipper making nearly 3,000 deliveries per week with the operation expected to start from August 2020.

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The statement did not reveal the identity of the incumbent it is replacing on the contract.

However a source at Clipper Logistics told the incumbent is DHL Supply Chain.

He added: “We were invited to bid for the contract along with Wincanton, XPO and others and were successful in winning the deal.

“We will be transferring over 100 drivers from the contract and we will take on their fleet of over 100 trucks – although we will replace those trucks with our own in the New Year.”

Announcing the deal today Steve Parkin, Clipper executive chairman, said: "Clipper has an enviable track record of developing solutions to meet the needs of retailers in a changing environment.

“I am delighted to be working closely with Arcadia on this solution and in developing a longer-term partnership."

This is the latest in a number of new wins for Clipper Logistics, which appears to be defying the impact of the Covid-19 pandemic on the UK economy.