Hermes Logistik increases German market share

German parcels carrier Hermes Logistik Group has achieved record revenues and volumes in the year ending February 2006, and has increased its share of the German CEP market. The Hamburg-based firm, which has agreed a strategic alliance with TNT, is meanwhile pressing ahead with plans for a European B2C network.

Hermes Logistik, a subsidiary of the Otto group, one of Europe’s largest mail-order companies, said it transported 213 million parcels and generated revenues of €908 million (€782 million net revenues) in 2005/06. Hermes carried 192 million parcels and had turnover of €710 million in the year ending February 2005.

Hermes Logistik said it now has a 35% share of the German B2C parcels market and has quadrupled its share of the C2C market to 22% within a year. The main success factor was the increasing customer use of its 11,000 PaketShops, which operate as “shop-in-shop” collection and drop off points for consumers and small businesses.

“The strategic positioning of the Hermes Logistik Group has completely paid off,” commented managing director Hanjo Schneider. “We will further strengthen our market position from a European perspective in the next few years.” Hermes said it was working on the creation of a European B2C distribution network, and aimed to increase its German market shares this year to over 25% for C2C items and 37% in the B2C sector.

In December 2005, Hermes Logistik and TNT announced a strategic alliance for B2C parcel services, initially in Germany and due to start in the first quarter of 2006. A joint subsidiary would be founded in Germany, with TNT using Hermes’ land transport network and Hermes using TNT’s hub capacity. TNT express products would be offered through the Hermes’ PaketShops.

Source: Hermes Logistik