German Hermes to increase number of outlets to 11,000 in 2005
German logistics services provider Hermes Versand, a subsidiary of mail order company Otto GmbH, plans to increase the number of its outlets to 11,000 in 2005 and get closer to the 12,000 of its chief competitor Deutsche Post, Hermes said on March 18, 2005.
In 2004, Hermes snapped up 3.0 percentage points of the Deutsche Post share in the market for package deliveries to private clients and plans to have a 10 pct market share by the end of the current fiscal year, two years ahead of schedule, Hanjo Schneider, CEO of Hermes Logistik Group, said. The market, dominated by Deutsche Post and Hermes, has a volume of 60 million packages a year. According to Schneider, Hermes’ prices stand on average 25 pct below those of its larger rival.
Most recently, Hermes struck a deal with furniture retail chain Ikea to deliver products sold at the Swedish group’s stores to the homes of customers from May 2005. Schneider said the deal had a potential to yield a turnover of up to 20 mln euro ($26.7 mln).
Hermes plans to transform some 1,000 of its outlets to the so-called premium shops, with longer working hours and offering new services such as cash on delivery.
Schneider forecast sales to grow 20 pct to 850 mln euro ($1.136 bln) in fiscal 2005/06, ending February 28, 2006. The company will seek to increase its share in the combined market for package deliveries to private and corporate clients by 2.0 percentage points to 34 pct over the period.
www.welt.de
Source: Die Welt
