Tibbett & Britten makes further progress in France
UK contract logistics operator Tibbett & Britten has won a major new contract with Castorama, France’s leading home improvement retailer and part of the UK group, Kingfisher, which also owns the B&Q chain of do-it-yourself stores.
T&B’s contract with Castorama will take the form of two parts. The first involves the management of a 20,000 sq m distribution operation covering France and Benelux from within one of T&B’s existing facilities in Arles near Marseilles. Due to the seasonal nature of the goods being handled at the facility (garden furniture) the contract has a duration of only six months.
The second part of the agreement covers the management of Castorama’s new 36,000 sq m distribution centre, also near Arles, which is due to come fully on line by mid-July 2004. The three year deal will see T&B manage replenishment services for a range of merchandise across the south of France. Eventually it is planned for seasonal goods to be integrated within this facility.
The contract is an important step for Tibbett & Britten which has made significant progress in the French market over the past few years, working with many of the leading retailers such as Intermarche and Auchan. It already has a total of 270,000 sq m of facilities at 19 dedicated and shared user locations throughout the country and a turnover of just under €100m. However, like many of the other logistics providers in the country, the company has faced increased pressure on pricing, and this combined with what management term operational challenges reduced the company’s profitability in 2003.
