GUS announces major thrust into fulfilment market
‘Reality’ is the confident new name adopted by Great Universal Stores for what it is calling Britain’s biggest-yet all-round direct sales fulfilment company. It combines the resources of GUS’s long-standing White Arrow delivery network with the Glasgow-based Reality Group, a Web design, hosting and e-commerce consultancy business it has acquired for £35 million.
The objective of the new £400 million company, says GUS, is to offer “a unique range of integrated end-to-end business solutions for organisations selling direct to the UK public whether conventionally or online”.
Reality will also be able to call on the resources of Experian, GUS’s customer targeting and data management specialist business, although this remains a separate company within the group.
The development comes as part of a strategic repositioning of GUS, which says it plans to focus in future on the Reality portfolio, plus information services and multi-channel retailing.
We understand White Arrow has technically become part of Reality, although it will retain its own identity under that umbrella. Its 4,200 customer service staff and 38 parcels depots will provide the bedrock of the new service, whilst still handling in-house deliveries for brands such as Argos and Kays, as well as existing third-party business for clients such as Readers Digest and Book Club Associates. Overall a staff strength of 20,000 is claimed.
Reality is the brainchild of Martin Trees, who moves over from Experian as chief executive and has also spent time with IBM, Sema Group and EDS. Also on the board are two directors from the acquired Reality Group founder Chris Gorman, who previously built up DX Communications; and Ian Grabiner, who has a history in retailing. The old Reality was founded only last year, but has already handled projects for customers such as Toyzone.co.uk and skysportsstore.com.
GUS says the bulk of new business will come from traditional retailers and manufacturers, who may want to improve their market reach or customer service, extend sales channels, or capitalise on the opportunities offered by e-commerce.
