Farfetch taps U.K.’s Clipper Logistics for supply chain tie-up

Luxury online retail platform Farfetch Ltd. announced a joint venture with U.K. logistics company Clipper Logistics Plc for some extra supply chain support.

The companies said Thursday that the 50-50 venture would create a logistics system for inventory from Farfetch’s businesses along with stock from other luxury brands. It will specialize in the demanding requirements for high-end e-commerce, Farfetch and Clipper said.

The tie-up is expected to launch early next year, subject to regulatory approvals, and will start by offering online fulfillment services in Europe, Asia and North America. The companies plan to expand further afield in due course.

As well as looking to Clipper to help provide smoother logistics, Farfetch’s chief operations officer, Luis Teixeira, said the move will also enable the company “to move stock closer to the customer” by developing a global warehousing footprint.

The Clipper tie-up follows the well-received news that Farfetch is in advanced talks to enhance its partnership with Richemont.

Retailers have been reporting the toll of supply chain woes in recent weeks, with disappointing results from Gap Inc. and Nordstrom Inc. adding to recent caution from European names such as Salvatore Ferragamo SpA. Companies have flagged stock shortages, along with rising costs and broader supplier issues.

Farfetch’s own share price took a plunge earlier this month after its third quarter update missed estimates and it trimmed a full-year forecast. It said then that a reliance on third parties to provide shipping services and global supply chain challenges may further impact its cost of revenue and affect its growth or service levels in the future.