DHL sees booming UK B2C volumes despite drop in retail sales
DHL Express increased its business-to-consumer deliveries by almost 60% throughout the UK in December even though overall retail sales in the country declined.
The announcement follows the release of figures from the British Retail Consortium (BRC) about dismal December sales figures. According to the UK’s leading trade association, UK retail sales values fell 3.3% on a like-for-like basis, and 1.4% on a total basis, compared to December 2007. By both measures, this was the worst December since the survey began 14 years ago and, barring Easter distortions, the worst performance of any month in that time, the BRC reported.
DHL Express said it believes its notable 57.8% increase in home deliveries over the festive period is a beneficial outcome that has resulted from increased online shopping activity over the festive season, coupled with significant growth in internet shopping overall.
Jonathan Smith, Managing Director DHL Express UK, said: “The increase in the number of packages we delivered to UK homes this Christmas season indicates that despite the economic downturn, consumer confidence in online shopping remained robust during the peak festive period, with consumers continuing to take advantage of opportunities for savings by shopping online.”
Smith continued: “To respond to the growing B2C market and counter the effects of the B2B parcel delivery market, which is seeing some decline, we’ve evolved with the market and revolutionised our home delivery service. We recognised the need for a service that takes the hassle out of home delivery so we operate a flexible delivery model that enables home shoppers to receive their packages at a time that suits them.”
Latest research undertaken by e-retailing industry body IMRG (Interactive Media in Retail Group) and Secure Trading, the UK’s leading independent payment services provider, shows that in the Christmas run-up, online shopping was later, larger and longer than in 2007. It also found traffic to retail websites during the run-up to Christmas 2008 was higher than the 2007 level, but transaction volumes rose even more sharply – up 9% in November and 28% in December.
James Roper, CEO of IMRG, said: “Though the number of people shopping online on Christmas Day was 14% lower than in 2007, the volume of transactions was 26% higher, and the value rose by 21%, indicating that serious bargain hunting was the order of the day.”
