Ad group WPP moves into logistics with e-commerce arm Everymile

LONDON, April 25 (Reuters) - WPP WPP.L , the world's largest advertising company, has launched an end-to-end e-commerce platform to handle the logistics and delivery of products sold by its clients, after it helped them grow online sales through the pandemic.

The British-based company set up direct-to-consumer sites for brands when the pandemic shut most shops, and "Everymile" will expand its offer to handle the entire process from attracting a customer to delivering the product to their door.

It will pit WPP against new rivals including Canadian e-commerce giant Shopify Inc SHOP.N and Britain's THG THG.L .

WPP, founded by Martin Sorrell, is known for its advertising and PR agencies including Grey, Wunderman Thompson and Ogilvy.

Everymile will have a revenue share commercial model. It will be overseen by WPP's finance director John Rogers, a former head of British retailer Argos and the former finance director of UK supermarket group Sainsbury's SBRY.L .

Online shopping grew rapidly during the pandemic but the sector has not been without its challenges, including a shortage of workers to pack and deliver items, global supply chain disruption and new Brexit trade rules.

"Developing direct-to-consumer capabilities is a strategic imperative for brands today, but we know that getting it right is complex," said Mark Steel, CEO of Everymile.

"We see ourselves as a growth partner for clients, helping build brand awareness and driving online sales for them, saving both time and stress."

Toronto-listed shares in Shopify, which counts sportswear firm Gymshark and food group Nestle among its clients, have fallen from their pandemic highs since the start of 2022. They currently trade nearly 60% lower than 12 months ago.
Reporting by Kate Holton, Editing by Paul Sandle

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