Deutsche Post to cut parcel delivery prices for private clients
Deutsche Post AG plans to cut its parcel delivery prices for private clients by an unspecified amount in order to compete more effectively with rivals, chief executive Klaus Zumwinkel told Handelsblatt.
‘We want to offer our private clients more attractive products at lower prices,’ Zumwinkel told the newspaper.
He did not specify by how much the German mail carrier’s prices would fall.
Deutsche Post to reduce prices to woo parcel customers (Post senkt die Preise)
HANDELSBLATTEuropean Intelligence WireHandelsblattHandelsblatt, p 18 03-23-2006
Deutsche Post, the German national postal services provider, has announced plans to reduce postage for parcels for private customers at DHL, its express and logistics subsidiary. Klaus Zumwinkel, head of Deutsche Post, said that more attractive products would be offered at lower prices. The group also plans to streamline organisational structures at DHL, improve quality and service and also increase profitability in general.
Mr Zumwinkel said that the aim was to reduce costs by a substantial eight-figure amount. Deutsche Post also intends to open up more post offices and service points in shops and petrol stations. The plans are seen as a direct challenge to Hermes, DHL’s largest competitor in activities with private customers. Hermes increased turnover by 28 per cent to 908m euros last year and also managed to more than quadruple its market share in the private customer market to 22 per cent within 12 months. DHL Express, meanwhile, saw turnover stagnate at around 12bn euros in Europe.
Original article by Axel Granzow
Abstracted from Handelsblatt
