TNT Post to strengthen retail network

TNT Post, part of TNT N.V., published a press release announcing the opening of 750 new sales outlets in shops in the Netherlands. TNT Post’s current services at 1850 shops will remain unchanged, providing consumers in the future 2600 points at which to transact postal business. The press release also states the joint intention of TNT Post and Postbank to transfer their services from the 250 main post offices to existing and new locations in their own networks by the end of 2012. This will involve discontinuing their partnership in Postkantoren BV (a 50/50 joint venture of TNT Post and Postbank), but continuing to work together at 550 of the in total 2600 locations in shops.

With the announced strengthening of the retail network TNT Post wants to further improve its service on the Dutch market. The increase of the number of sales outlets will enable customers to do their postal business closer to home. Having more shop-based sales outlets will improve customer satisfaction with regard to opening hours, waiting times and accessibility.

TNT Post estimates that in 2008 the restructuring costs involved in discontinuing the existing joint venture in Postkantoren BV is expected to be around EUR 70 million before taxes. Furthermore it is expected that, as the result of one-off items and the savings achieved, the expansion and modification of TNT Post’s retail network from 2009 through to 2012 can be achieved with a slightly cash positive balance. From 2013, full implementation of these plans is expected to contribute a structural annual operational cost saving of EUR 45 million compared to the level of 2007. From these cost savings an amount of EUR 25 million comes on top of the earlier communicated savings target for master plans of EUR 370 million in the period 2007 – 2015. As a result the target is increased to EUR 395 million euro.

TNT Post and Postbank will make available the financial resources necessary for Postkantoren BV to offer a social plan aimed at guiding all employees into new jobs and avoiding forced redundancies as much as possible.
A request for advice on these plans will shortly be submitted to the Works Council.

TNT Post, part of TNT N.V., published a press release announcing the opening of 750 new sales outlets in shops in the Netherlands. TNT Post’s current services at 1850 shops will remain unchanged, providing consumers in the future 2600 points at which to transact postal business. The press release also states the joint intention of TNT Post and Postbank to transfer their services from the 250 main post offices to existing and new locations in their own networks by the end of 2012. This will involve discontinuing their partnership in Postkantoren BV (a 50/50 joint venture of TNT Post and Postbank), but continuing to work together at 550 of the in total 2600 locations in shops.

With the announced strengthening of the retail network TNT Post wants to further improve its service on the Dutch market. The increase of the number of sales outlets will enable customers to do their postal business closer to home. Having more shop-based sales outlets will improve customer satisfaction with regard to opening hours, waiting times and accessibility.

TNT Post estimates that in 2008 the restructuring costs involved in discontinuing the existing joint venture in Postkantoren BV is expected to be around EUR 70 million before taxes. Furthermore it is expected that, as the result of one-off items and the savings achieved, the expansion and modification of TNT Post’s retail network from 2009 through to 2012 can be achieved with a slightly cash positive balance. From 2013, full implementation of these plans is expected to contribute a structural annual operational cost saving of EUR 45 million compared to the level of 2007. From these cost savings an amount of EUR 25 million comes on top of the earlier communicated savings target for master plans of EUR 370 million in the period 2007 – 2015. As a result the target is increased to EUR 395 million euro.

TNT Post and Postbank will make available the financial resources necessary for Postkantoren BV to offer a social plan aimed at guiding all employees into new jobs and avoiding forced redundancies as much as possible.
A request for advice on these plans will shortly be submitted to the Works Council.