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Logistics firm is in a sweet spot as retailers require more sophisticated product management
Thursday 14 Dec 2017 Author: David Stevenson

The proliferation of consumers returning items bought online is playing into the strengths of logistics solutions and e-fulfilment company Clipper Logistics (CLG).

The ability to return an item at little or no cost is fast becoming one of the key reasons why consumers choose to use certain retailers, particularly fashion sellers.

There is a growing trend for individuals to order multiple sizes of clothes and send the ones back that don’t fit, rather than having to go into a physical store to try them on.

Other people are getting swept up by online promotions and regretting orders soon after they’ve been made, thereby resulting in the items being sent back.

Clipper runs returns management services for many of the UK’s biggest retailers.

Its e-fulfilment and returns management business grew earnings before interest and tax (EBIT) by 25.7% to £5.3m in the six months to 31 October 2017.

Having worked with ASOS (ASC:AIM) in the UK, Clipper has now opened a new returns facility for the online retailer in Poland.

In June Clipper bought RepairTech, a provider of consumer electronic repair services, as another way of capitalising on the returns trend.

Clipper’s strategy is to handle item returns on behalf of retailers; sorting out products which can be resold and helping them get back into the supply chain. (DS)

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