TNT Post acquisition receives mixed reaction

TNT Post’s acquisition of home shopping company JD Williams’ courier delivery network, representing another major step in TNT’s assault on the UK deregulated postal market, has had a mixed reaction from the DM industry.

The deal, announced last month, gives TNT Post UK, formerly TNT Mail, an 80 per cent coverage of business-to-consumer and consumer-to-consumer parcel delivery networks across the UK.

Nick Wells, chief executive of TNT Post UK, said that the move was part of a three-pronged attack on the market. “We have a three-pillar strategy: access; rolling out mail sortation services and creating an end-to-end network, which could include packets and parcels,” he said.

“Ultimately, it would be nice to create a network for letters, but that will be separate to the parcel network, and take time. We won’t have orange pillar boxes just yet.”

David Laybourne, technical director at DPS direct mail praised TNT’s boldness in moving to create a competitive end-to-end service, but expressed fears over possible damage to Royal Mail. “Things like this weaken Royal Mail and its universal service obligation.

“If we’re not careful, Royal Mail will be left with the worst case scenario of having to deliver to the expensive rural areas, but without the volume in the less expensive areas to make it economically viable,” he said.

However, David Robottom, director at D&S Consultants and a postal service specialist, said: “It’s good news for the marketplace.

We have TNT adding to its end-to-end capacity and we have a major independent company now delivering parcels, so it’s good news for the home shopping sector. It’s a sign of innovation and development within the sector.”

Royal Mail declined to comment on the acquisition.

The business becomes part of TNT at the end of August, when the service will be branded under the TNT Post UK name.