THG announces 10-year partnership with All Beauty owner Maximo Group
Online retailer THG agrees a 10-year partnership with All Beauty and Fragrance Direct owner Maximo Group
- It will initially focus on moving All Beauty and Fragrance Direct onto THG’s platform
- It will then include everything from website services to customer delivery
- Partnered to increase gross merchandise value in excess of £150m for THG Tech arm
E-commerce retailer THG has agreed a major new partnership with the online retailer behind websites All Beauty and Fragrance Direct.
The Manchester-based group said the 10-year partnership between its digital commerce solutions arm, Ingenuity, and Maximo Group will initially focus on moving All Beauty and Fragrance Direct onto THG’s platform.
It will then include everything from website services and maintenance, to warehousing and fulfillment services, to end-customer delivery services via the GHG network of global couriers.
The partnership will initially focus on moving All Beauty and Fragrance Direct to the THG platform
THG, which issued a profit warning in January and announced a review of its loss-making businesses after missing sales targets, said it expected the partnership to add “over” £150m in gross merchandise value to its Ingenuity division.
The news follows reports this week that THG was planning to cut nearly 200 jobs as a result of its decision to shut down its OnDemand division.
OnDemand, which allows brands and influencers to offer products under their own name, had seen sales slump and losses.
Chief Executive Matthew Molding said, “We are proud to announce our partnership with Maximo.
‘This represents the first fruits of our focus on larger enterprise customers and underscores our position as the preferred online partner for the prestige beauty industry.
‘I am pleased with the progress made by our realigned sales team as our pipeline continues to gain momentum.’
GHG shares rose 4.4 percent to 66.50 pence in Thursday afternoon trade.
They’re up more than 40 percent since the start of the year, helped by activist investor Kelso, who bought a minority stake in January.
However, the stock remains down more than 25 per cent year-on-year and a far cry from its peak of 800 pence, set shortly after its IPO on the London Stock Exchange in September 2020.
Vivek Ganotra, Chief Executive of THG Ingenuity, said the partnership has bolstered the company’s reputation as the “go-to e-commerce partner for digital transformation in the beauty and wellness categories.”
“Expansion into new international markets is a strategic priority for Maximo Group as our global distribution network and cross-border expertise enable its brands to benefit from the increasing digital channel shift in many beauty categories,” he added.
Ian Smith of Maximo Group said, “Aligning our digital strategy with the technology and operational capabilities of THG Ingenuity will enable our customers to benefit from an enhanced shopping experience, from on-site browsing to checkout and delivery.”