European parcel delivery firm Hermes is targeting international growth in the booming e-commerce segment with plans to expand its value added services for Internet retailers.
The Hamburg-based group revealed its latest annual financial results yesterday, with a 4.7% increase in total revenues thanks to record shipping volumes in its UK subsidiary.
Total revenues for the group were EUR 1.7bn for the fiscal year 2011, with Hermes seeing particular success in shipping e-commerce purchases and, in Germany, large items and furniture.
The company, owned by catalogue retail giant Otto Group, now operates in more than 20 countries, and said plans are to expand into more emerging markets and push forward with expanding web-enabling services for customers.
Hanjo Schneider, CEO of Hermes Europe and CEO of Otto Group for the Services segment, said in 2012 the company will expand digital services for e-commerce markets including Brazil, India and China.
“In the future we want to participate even more in the Internet trade – and even on the expansion of our own Web-enabling activities,” said Schneider.
“The probability is high that if we open the Internet as a distribution channel successfully, the customer will use logistics and trade-related services from Hermes.”
Pushing for growth (From left to right): Hermes Group chief executives Hanjo Schneider (Hermes Europe), Carole Woodhead (Hermes UK) and Frank Iden (Hermes Logistics Group, Germany)
Commenting on the company’s 2011 results, Schneider said his company had been successful despite facing difficulties from high fuel prices, and said despite an uncertain global economy, Hermes was set to continue growth “significantly”, creating 500 jobs.
Shipping volumes group-wide increased 5% to a total of 430m shipments in Europe during the fiscal year. Much of the group’s revenues come from shipping for Otto Group companies, but around 65% of revenues come from customers outside the group, Hermes said.
Hermes Germany had the largest share of group revenues, with EUR 986.3m revenues in 2011, up 3% on the previous year. Particular growth came from furniture and large items, as well as electrical appliance deliveries, a segment that saw 15% growth in 2011.
Some of the biggest growth in the group was seen in the UK, where Hermes UK increased its sales by 22% in 2011, to EUR 303m for the year. Hermes said the company consolidated its position as the UK’s second largest package delivery service for private customers.
By the end of 2012, further growth should come with the opening of around 1,000 parcel shops by Hermes UK.
Elsewhere in the group, Hermes is looking for rapid growth in the business-to-consumer market in Russia through its joint venture with La Poste’s DPD network, through which Hermes and DPD are opening 1,500 parcel shops in 44 cities across Russia up to 2014.
Hermes Group has also recently acted to grow its business with the United States in a new fulfillment partnership with US warehousing company Kenco.
Source: Post&Parcel/Hermes Logistics Group