Clipper Logistics PLC (LSE:CLG) is to enter into a joint venture (JV) with Farfetch, which operates a platform for the luxury fashion industry.
The tie-up will create a logistics offering for inventory from Farfetch’s group of companies, including Browns and New Guards Group, as well as products from other luxury brands, tailored to meet the needs of the global luxury goods sector.
The JV, which is expected to launch in early 2022 subject to relevant regulatory approvals, will offer online fulfilment services in key luxury territories in Europe, Asia and North America with plans to further expand in the medium term.
Clipper will own 50% of the JV.
“The luxury goods sector is going through a period of transformation and we’re delighted to extend our relationship with Farfetch to meet these new demands with a global e-fulfilment solution,” said Steve Parkin, the executive chairman of Clipper.
“This joint venture is fully aligned with our global ambition and another transformational step forward for Clipper as we innovate the logistics space,” he added.
Luis Teixeira, the chief operations officer, said the JV will plug a gap “with respect to the very specific value-added services required for high-end brands and boutiques”.
House broker Shore Capital said the announcement is highly positive for the group, extending its relationship with Farfetch in the luxury goods sector and global e-fulfilment solutions.
Peel Hunt echoed the sentiment, noting that Clipper will provide the technology and Farfetch the carrier and duty management systems.
“This is a positive development for Clipper in our view, providing a low-risk entry to markets outside of the UK and Europe,” Peel Hunt said.
Shares in Clipper were unchanged in lunchtime trading.
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