DPD plans more parcel shops in Germany
DPD plans to build up a network of parcel shops across Germany to develop its currently small B2C business and take on DHL and Hermes. The move is part of a new strategy to broaden its product portfolio both in Germany and internationally.
“We have adopted a clear growth strategy,” DPD joint CEO Hans Fluri told German newspaper Die Welt in an interview. The German B2B market leader, with annual revenues of about EUR 1 billion, increased parcel volumes about 5.5% and turnover by 7% last year, the newspaper said. In the B2C market, however, DPD with 35 million shipments lags well behind DHL and Hermes (200 million parcels).
To expand its consumer parcels business, the La Poste subsidiary aims to build up its small network of DPD Shops. “Today we have about 500 DPD Shops. By the end of 2007 we want 2,500 outlets. By 2010 we are aiming for 5,000 shops,” Fluri said.
Although Hermes, with 13,000 outlets, and GLS (4,000) are much larger, DPD sees potential for a third network, he added. “Customer behaviour in terms of parcel shops is not yet fixed and will change. We are convinced that as a well-known firm we have a good chance,” Fluri stated.
Meanwhile, DPD now offers its international parcel distribution by air express to more than 220 countries through a network of cooperation partners, Die Welt reported. Prices are about 40% lower than normal air express rates, and transit times are 1-2 days longer. DPD recently enhanced its express service within Germany with new service options.
