HH Global has been awarded a “multi-year contract” by Asda covering outsourced procurement services for all of the supermarket’s POS requirements, which was previously handled by Delta Group.
The Leatherhead-headquartered business has been providing marketing print services to Asda since 2009, which includes the production of the Asda magazine and other in-store literature. It was subsequently awarded the George at Asda POS contract in 2015.
The company said the new deal “positions HH Global as Asda’s strategic partner for outsourced print procurement”.
HH Global chief executive Robert MacMillan said: “This significant contract win demonstrates that our proposition has traction with large-scale retailers. A critical pillar of our business plan is to become a strategic partner to our existing clients, which I strongly believe can only be achieved by providing market-leading service.
“This win is an excellent case in point of how delivering operational excellence can act as the springboard for growth.”
Asda senior director of marketing operations Sarah Singleton added: “We are always looking at ways to develop more creative, effective and efficient partnerships with our suppliers in order to better serve our customers.
“HH Global were already delivering a great job for our business and our customers in other areas, and they wowed us with their offer on this tender.”
The deal follows a raft of other recent new business wins for HH Global, including JD Sports EMEA, Walmart China and Met Life USA. And earlier this month it was revealed that the company had been awarded the contract to manage the Census Print and Post contract.
HH has not disclosed which print suppliers it will be working with on the multimillion-pound Asda contract, which had moved to Delta Group in 2011 from Bezier, which had held it for more than 25 years.
Asda was Bezier’s single-biggest customer at the time and its business dramatically reduced in size over the subsequent years, with its print arm closed in 2013.
In a statement, Delta Group said: “Delta are of course very disappointed with Asda’s decision to move the business, but we wish them well and thank them for the work over the past seven years.
“We believe Delta will continue to prosper in this tough market by continuing to offer best value manufacturing, technology and marketing services.
“We have made some redundancies that were mostly staff dedicated to producing specific Asda work.
“We received the news in January and have since won two accounts that although don’t replace Asda do go some way towards it and the new business pipeline is exciting and robust.”
Industry sources have told PrintWeek the number of redundancies at Delta Group is “over 100”.
Delta Group chief executive Jason Hammond said exact numbers could not be disclosed at this stage but that the group still employs “over 850 staff”.
He added that he hopes the effect on turnover by the end of the year “will be minimal” when taking into account the other work coming in. Delta’s most recently filed turnover on Companies House, for the year ended 31 December 2017, was £65m.
Sources have also told PrintWeek that the Dixons Carphone contract currently held by Delta is moving to Inspired Thinking Group (ITG).
However, neither Dixons Carphone nor ITG had responded to request for comment at the time of writing.
Hammond told PrintWeek that Delta Group’s two “high-calibre” new accounts include one brand and one retailer.
“We’ve had a very busy April and forward looking into May it’s extremely busy, which is obviously very positive,” he said.
“It looks as if a lot of budgets have been released or the Brexit brake has been released – there was definitely some concern over Brexit when there was a definitive date that seems to have dissipated and people seem to be spending on their marketing and trying to gain market share. We’ve definitely seen an uplift in spend from the clients in the last couple of months.”