A potential between Clipper Logistics Plc (LON:CLG) and Arcadia Group is another positive development for the London-listed firm, that’s according to broker Shore Capital.

Today, the company told investors it is in advanced talks with Arcadia Group over a transportation contract for their store delivery network. If finalised and secured, the contract envisages Clipper making nearly 3,000 deliveries per week starting in August 2020.

READ: Clipper Logistics in advanced talks for Arcadia store delivery contract

“Despite the wider fallout in the retail sector as a result of Covid-19, Clipper has been winning new and extending contracts in recent months,” Shore Capital analyst Peter Ashworth said in a note.

“The Arcadia contract negotiation shows continued momentum in the Clipper business and the range of value-added logistics solutions it can provide, demonstrating the group’s ability to meet the needs of its retailer customers in the changing marketplace.”

In this morning’s statement, Clipper executive chairman Steve Parkin said: “Clipper has an enviable track record of developing solutions to meet the needs of retailers in a changing environment.

“I am delighted to be working closely with Arcadia on this solution and in developing a longer-term partnership.”

The company noted that the current transport contract is held by another logistics provider and TUPE (transfer of undertakings and protection of employment) consultation are expected to take place once an appropriate process is agreed between Clipper and the incumbent contract holder.

Clipper noted that today’s announcement is being made, at this stage, because the TUPE process will happen in the public domain.