Matalan has partnered with a division of THG in a bid to "accelerate its digital ambitions".
The Merseyside-headquartered retail has announced the deal with THG Ingenuity for 2022.
The move will see Matalan will migrate its digital channels to THG Ingenuity to "deliver a transformed customer experience".
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Matalan added that its investment in automation technology at its Knowsley Distribution Centre will help double its capacity to fulfil rapid online demand.
James Brown, chief commercial officer at Matalan, said: "There’s an incredible sense of energy around the business as we gear up our digital transformation and prepare for the next pivotal phase in Matalan’s growth journey.
"Our teams have been working hard through this extraordinary period in retail to make sure that we achieve our exciting growth ambitions and meet significant customer demand in the years ahead.
"Millions of families up and down the UK rely on us to offer great quality and value fashion and homeware, but we know that ultimately, it’s the customer experience that can make the real difference when choosing where to shop.
"That’s why we are dedicating so much of our focus to future-proofing our proposition through this digital transformation programme, across our stores, e-commerce site and Matalan app.
"We are thrilled to have identified THG Ingenuity as a great partner who have impressed us with their extensive expertise, innovation and capabilities to accelerate the transformation of our business over the long-term, so that we can continue delivering ‘the Matalan Difference’."
John Gallemore, CEO of THG Ingenuity, added: "We’re delighted to announce this new strategic partnership, which will significantly accelerate Matalan’s digital transformation strategy and represents a step-change in its direct-to-consumer operation.
"The brand is a trusted household name, with great heritage and considerable growth across ecommerce, making it an exciting client with huge potential.
"Even at this early stage in the process, we have together identified a sizeable pipeline of impactful upgrades to Matalan’s systems to make a real difference to its customer proposition across different channels.
"The brand will now benefit from THG Ingenuity’s proven end-to-end ecommerce capabilities and best-in-class infrastructure, with the aim of rapidly delivering valuable scale across the business.
"We look forward to working closely with the team for long-term success."