Otto Gruppe to open up distribution network to external customers

German mail order company Otto Gruppe is planning to open up its distribution network to external customers, according to a report in German daily Die Welt to be published tomorrow, citing unidentified sources.

Otto, which has been using its seven distribution centres and warehouses for the company’s own distribution needs, wants to offer its services to external customers in a bid to counteract falling sales at its German mail order business, which dropped around 5 pct last year, and to compete with rivals such as Deutsche Post AG’s DHL unit, the newspaper said.

The company is currently developing a plan on how to open up its business, with a final decision expected by mid-July, it said.

Otto Gruppe declined to comment, Die Welt added.