TNT Post UK enters consumer parcels market – network acquisition provides TNT with 80% household coverage
TNT Post UK, the leading competitor to Royal Mail in the UK postal market, today announces the acquisition of the JD Williams courier network. This development provides an entry for TNT Post UK to Business to Consumer (B2C) and Consumer to Consumer (C2C) parcel and packet delivery markets, providing 80 per cent coverage in the United Kingdom.
The JD Williams courier network employs 194 employees supported by a network of over 2200 self-employed couriers and currently delivers some 12 million parcels and packets per year to consumers in the UK. The acquisition of the courier network is a significant gain for TNT Post’s ‘End to End’ strategy of being able to offer customers a complete postal and delivery solution. TNT Post UK is now equipped with a valuable parcel infrastructure from which to service both JD Williams’ home shopping customers and all potential customers that want a next day or 2 day delivery option.
Nick Wells, Chief Executive of TNT Post UK, said:
“This network acquisition is a big development for the TNT Post business that really propels us forward in terms of business growth and our position in the UK postal market. We will be taking on the entire courier network including all employees and the self employed couriers will be able to continue to offer their services and will be encouraged to do so. We will be upgrading the communications infrastructure and sorting operation in order to improve efficiency and expand the network further. We will continue to offer our customers a high quality, good value B2C parcel delivery service backed by the TNT brand and service ethic.”
TNT Post UK will continue to grow and develop the courier network and ensure it can compete effectively with Royal Mail and other B2C parcel competitors. Combining both networks strengthens our End-to-End strategy and offers TNT Post UK the capabilities to use the combined network for non-parcel deliveries. It is proposed that the transfer of the business to TNT will take place on 28th August 2006.
Since the liberalisation of the UK postal market on 1st January 2006, TNT Post UK has been a leading player in the market processing over 60 million letters a month. Despite still having to face numerous barriers to fair competition in the UK postal market, TNT Post UK has in a short period of time impressed businesses with its innovation, high-level service approach and cutting-edge technology investments. It has notched up some significant wins and now boasts an impressive client list including Sky, Barclays, Lloyds TSB, npower, Thames Water and Ikea.
About TNT Post UK
TNT Post is the number one innovator in the UK’s postal industry. It provides full-service sophisticated services, superior efficiency, flexibility and greater value. TNT Post, formerly TNT Mail, was established in early 2003 and signed its downstream access agreement with Royal Mail in April 2004 and began operations in late August 2004. Since its launch, it has developed three products for customers:
Premier – a 2 Day Premier Business Service with ‘final mile’ delivery by Royal Mail e.g. bills, statements, direct mail and general customer correspondence;
PremierSort – the collection and processing of unsorted mail before ‘final mile’ delivery by Royal Mail;
End to End – The acquisition of HDS will provide TNT Post with the resource to provide a delivery service for both letters and heavier weighted, non-time sensitive items using its own delivery networks
TNT Post is part of TNT N.V. which provides businesses and consumers worldwide with an extensive range of services for their mail and express delivery needs. Headquartered in the Netherlands, TNT offers efficient network infrastructures in Europe and Asia and is expanding operations worldwide to maximize its network performance. TNT serves more than 200 countries and employs over 128,000 people (over 163,000 people including the division Logistics which is intended to be divested). For 2005 the company reported € 10.1 billion in revenues (€ 13.6 billion including Logistics). TNT N.V. is publicly listed on the stock exchanges of Amsterdam, New York and Frankfurt. TNT recognizes its social responsibility, and has formed partnerships with the United Nations World Food Programme and the United Nations Environmental Programme to fight hunger and pollution in the world.
About JD Williams
JD Williams is the most successful direct home shopping company in the UK, operating over 20 successful catalogue brands, with over 2 million customers and 4,000 employees. Its catalogues offer a huge selection of clothing and other products for all ages and sizes. All the clothes are designed to provide the best fit at the best value. J D Williams are also specialists in the area of larger size womenswear.
The company was founded in 1875 by James David Williams, who in 1882, was the first to make use of the UK's parcel post service, to send his company's products direct to his customers.
JD Williams is part of N Brown Group plc, which is listed on the main exchange (BWNG.L) and has a market cap of approx £660m. All the Group's brands are sold via catalogues and the internet.
The JD Williams courier network provides the home delivery service for the N Brown Group of companies. The courier network employs 194 employees supported by a network of over 2200 self-employed couriers.
