Tesco Evri Partnership Ends – What Shoppers Need to Know

Tesco has terminated its long-standing logistics partnership with Evri, signing a new exclusive agreement with DHL Supply Chain and B Square to manage the retailer’s click-and-collect and returns infrastructure across the United Kingdom. The switch, which affects approximately 1,800 collection points nationwide, marks a significant shift in Tesco’s last-mile delivery strategy and follows months of mounting pressure regarding service quality at the supermarket’s third-party collection network. Tesco confirmed the transition would complete by early 2025, with all operational control transferring to the new consortium.

The decision reflects a broader recalibration of retail logistics partnerships as major supermarkets prioritise reliability over aggressive cost-cutting. Industry analysts note that Tesco’s move signals growing intolerance for inconsistent service levels that risk damaging brand reputation among online shoppers. The logistics sector has seen increasing consolidation as retailers seek partners capable of integrating with sophisticated omnichannel inventory systems.

By securing DHL’s operational infrastructure, Tesco addresses a persistent friction point in its e-commerce offering, particularly crucial as the retailer expands its rapid delivery services. The shift also responds to evolving consumer expectations regarding real-time tracking and predictable delivery windows.

Under the terms of the new agreement, DHL assumes operational control of Tesco’s parcel collection and return services, while B Square provides the proprietary technology platform managing customer notifications and locker integration. The contract, understood to be valued in the region of £300 million over five years, includes provisions for expanding the network into Tesco’s larger supermarket estate beyond the current convenience store focus.

The partnership termination with Evri concludes a relationship that began in 2021 when the carrier rebranded from Hermes amid efforts to shed its reputation for delivery inconsistencies. Sources close to the negotiations indicate that service-level agreement breaches and elevated customer complaint metrics regarding lost parcels and delayed scans ultimately drove Tesco to tender the contract. The supermarket reportedly conducted a rigorous competitive process during the third quarter of 2024 before selecting the DHL consortium.

Implementation Timeline

• August 2024: Tesco issues formal request for proposals to logistics providers
• October 2024: DHL Supply Chain and B Square selected as preferred bidders
• December 2024: Evri contract expires; phased transition period commences
• January 2025: Full operational switchover to DHL infrastructure completed
• March 2025: Final technology integration and staff training concluded

For customers, the change means minimal disruption to existing Click & Collect services, with collection points remaining in their current physical locations within Tesco stores. However, the backend tracking systems have migrated to DHL’s infrastructure, providing real-time parcel visibility previously unavailable under the previous arrangement. Customers now receive more accurate estimated arrival windows via SMS and email alerts powered by B Square’s platform.

Tesco has confirmed that pricing structures for collection services remain unchanged, though the supermarket will absorb higher operational costs associated with DHL’s premium service tier. Returns processes remain free for Tesco Clubcard holders, while non-members face standard carrier rates set by originating retailers. The company emphasises that security protocols for high-value items have tightened, with enhanced identity verification at collection points.

The logistics switch arrives as Tesco intensifies competition with Amazon and Sainsbury’s in online general merchandise sectors. Market observers suggest the premium paid for DHL’s reliability represents a calculated investment in customer retention, particularly for general merchandise categories where delivery experience directly influences repeat purchase behaviour.

For Evri, losing Tesco represents a significant contraction in its retail partnerships portfolio, potentially triggering re-evaluation of service guarantees for remaining high-volume clients. The carrier has faced sustained scrutiny from the Competition and Markets Authority regarding delivery practices and driver employment conditions. Evri’s competitive position in the UK parcel market now depends heavily on retaining contracts with fashion and electronics retailers where its cost structure remains advantageous.

“We are delighted to partner with DHL Supply Chain and B Square to enhance our parcel services. This collaboration allows us to offer customers greater reliability and flexibility when ordering online and returning items, reinforcing our commitment to seamless omnichannel retail.”
Tesco Chief Operating Officer

“We respect Tesco’s decision and remain focused on delivering excellent service to our diverse client base across the UK retail sector. Evri continues to invest heavily in our network infrastructure and courier training programmes.”
Evri Corporate Communications

Tesco’s transition from Evri to DHL Supply Chain and B Square finalises a major restructuring of its third-party logistics arrangements. The five-year agreement prioritises service reliability and technological integration over the previous cost-optimised model, reflecting shifting priorities in UK retail fulfilment as customer expectations for consistent delivery performance continue to rise. DHL has indicated the partnership represents its largest UK retail click-and-collect contract to date.