The move is part of M&S’ logistics review to cut contractors for its UK general merchandise warehousing from four to two and will cost £35m and generate annual savings of £20m.
From March 29, Exel will manage seven of M&S’ 11 general merchandise warehouses across the UK on a five-year contract.Christian Salvesen will continue to manage its current three UK warehouses.
T&B will provide other services to M&S, including its wine operations and the joint retail logistics venture. And Gist will continue to operate the majority of the retailer’s food supply chain.
M&S director of clothing & international David Norgrove said the move would enable it “to deliver aspirational products, with speed and flexibility, at outstanding values”.
Tibbett & Britten said it will receive a cash payment of around £23m for the assets to be transferred to M&S, as well as contract termination costs.