UK parcel shop business Local Letterbox “ceased trading”
The UK parcel shop network Local Letterbox appears to have ceased trading this month, before managing to get its nationwide service publicly launched. The company founded in 2012 had promised to set up a network of franchised parcel shops across the UK to provide alternative delivery points for e-commerce parcels, and allow the return of unwanted items.
The unique selling point had been that the parcel shops would be dedicated to parcel services, rather than being combined with existing retail businesses such as convenience stores or filling stations.
Fully tracked delivery via local letterbox would have been priced at a flat rate of around £2.99 for parcels up to 20kg in weight, offering tight margins for parcel shop operators.
The concept even aimed to have changing rooms in store suitable for consumers to try on purchased clothes before deciding whether or not to return them.
But, the bid to establish the network has come alongside major moves by UK-operating parcel carriers to set up and expand their own parcel shop networks, including the likes of Hermes, UPS and Yodel, while the Post Office has also ventured into providing “click and collect” services for e-commerce consumers.
Brick and mortar retailers in the UK have also been launching and building their own “click and collect” services using their existing stores as collection points.
Even railway operator Network Rail has got in the act, with its station-based click and collect business, Doddle.
However, the fate of Local Letterbox also appears tied to the troubles of another company owned by chief executive Nick Davis, Lymington-based Gulf of Aden Group Transits, which provided security staff to protect shipping from pirates off the coast of East Africa. That company ceased trading at the end of July according to UK media reports.
“No option”
The former chief operating officer at Local Letterbox, Zoe Ombler, has said in a statement that the sudden closure of the parent company had forced the end of Local Letterbox.
“Local letterbox was aiming to be the only national network of dedicated parcel shops, offering a real solution to the frustration faced by every online shopper — the ‘sorry you were out’ card.
“We had been seeking funding to enable our rollout but with the sudden and unexpected forced closure of our parent company were left with no option but to cease trading with immediate effect,” said Ms Ombler in a statement on the LinkedIn website.
Emails to Local Letterbox and its senior directors have not been returned.
Since unveiling its new business offer in December 2012, Local Letterbox had attracted parcel delivery firm CityLink as the first carrier to partner the service.
In June the company formed a partnership with Norbert Dentressangle Transport and Distribution UK, which had planned to provide logistics and infrastructure support for the fledgling network of parcel shops.
In May, the company unveiled a new concept called a “Parcelpod”, which it tested with online fashion retailer ASOS for a month. Parcelpods were like parcel locker terminals with small changing rooms attached, so that consumers could receive clothing bought online, try it on and send it back if it did not fit.
Under the plans, these staffed Parcelpods would have been set up in public locations like supermarkets, gyms and universities, and even convenience stores. Local Letterbox had suggested that 4,000 Parcelpods would be installed across the UK, including a “minimum” of 500 by the end of this year.
