Hermes UK to double size of ParcelShop network next year
UK parcel carrier Hermes has doubled the size of its ParcelShops network just months after launching with 500 outlets. The company has now opened its 1,000th location, in Stockport, Lancashire.
And, it said on Friday that it now plans to more than double the size of its network again, to more than 2,500 shops, by the end of 2013.
Branded to match its online consumer parcel portal, the myHermes ParcelShop network was launched back in June, with retail partners like convenience stores offering parcel services including the sending of parcels and product returns.
Rob Edson, the Hermes chief financial officer, said: “Our myHermes ParcelShop network forms an important part of our multi-channel approach that offers a convenient and hassle-free delivery experience, achieving high levels of satisfaction, which ultimately creates brand value.”
Network
The Hermes ParcelShop network in the UK is currently competing with the CollectPlus network, a joint venture of rival parcel carrier Yodel, which has been operating since 2009 and launched parcel mailing services in early 2011. CollectPlus now has a network of 5,000 outlets in the UK.
Hermes is locating its ParcelShops in highly populated areas, through retail outlets run by both large chains like Co-operative Group, as well as independent operators.
The company says it is being deluged with applications to run ParcelShop franchises at the moment, with convenience store operators keen on the extra footfall the services bring. It has even had to reject applications from convenience stores that meet the standards required to run a ParcelShop franchise where
Expansion in areas of Central England around Birmingham, Swindon and Oxford has been helped through an agreement with the Midcounties Co-operative.
Andy Cresswell, deputy chief executive of the Midcounties Co-operative, said: “Being able to offer ParcelShop in our stores will not only provide even wider choice and greater convenience to our members and customers, but also contribute to increased footfall and basket spend instore.”
Expanding services
Hermes, which is owned by distance-selling giant Otto Group, has followed the success of its sister company in Germany in opening ParcelShops in Britain. Hermes Germany currently provides more than 14,000 ParcelShops.
In a recent briefing, the company’s executives told Post&Parcel that they see ParcelShops as more of a “people business” than the use of automated self-service parcel terminals as a consumer parcel pick-up and drop off alternative.
The network is already responsible for the collection of 10% of parcels through the myHermes online shipping service, with shippers including smaller ecommerce merchants benefiting from faster delivery times dropping items off at ParcelShops compared to the usual courier pick-up service.
Hermes is now intending to expand the services available through its UK ParcelShops, and next year will allow online shoppers to designate their nearest outlet as an alternative delivery point where they can pick up a parcel if they cannot be at home to receive it.
The option will be useful since Hermes has been prioritising locations for its ParcelShops in areas where its first-time delivery rates are struggling to get above 90%.
Gary Winter, the Hermes sales and marketing director, confirmed: “We’re launching the delivery to ParcelShop option in the first quarter of next year, so on some of our customer websites you will be able to choose to deliver your purchase to a ParcelShop.”
