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Clipper wins Tesco e-tailing contract

PRESS RELEASE

June 10, 2014: Clipper Logistics plc is pleased to announce that it has been awarded a major 5-year contract extension with Tesco. In addition to Clipper's existing e-fulfilment solutions for the retailer, the deal is to include the development of additional services to support the growth of their online clothing business.

In order to match Tesco's growth plans the contract will be serviced from a 400,000 sq foot facility in Daventry. This will create up to 200 jobs in the short term, with significant potential for further employment opportunities in the longer term as the contract progresses. The bespoke solution will include added value pre-retail services, which will ensure clothing is made retail ready and available for customer delivery, in a timely manner. The contract builds on an already successful solution for Tesco's online clothing, which has been in operation since 2009.

Under Clipper's proposal, the new Daventry distribution centre will be operated on a shared user basis, a model that allows multiple retailers of varying sizes to spread cost, technology and skills across more than one contract. The site is schedule to undergo a significant refit in order to prepare for the new contract, which will create a class leading solution for on-line clothing fulfilment. The first stock is expected to arrive at the Daventry site in August 2014 as the contract is introduced on a phased basis to ensure minimum disruption.

Steve Parkin, Executive Chairman of Clipper commented: "We are delighted to have been awarded this contract extension so soon after our successful listing on the London Stock Exchange. This contract extension is an excellent example of Clipper's commitment to the continued growth of the business."

"Tesco is a leading name in UK retail and we're delighted to have agreed this long term contract and bespoke logistics solution, which will help support their continued and impressive growth online. Our expertise in multichannel retail and continuing success in servicing the Tesco contract, has given them the trust in our ability to plan well into the future. We'll be looking to further improve the Tesco clothing supply chain in order to remove cost, complexity and risk from their business."

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