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New results show significant increase in direct mail volumes for the retail sector

New figures today revealed that the retail sector has experienced a 1.1 per cent increase in direct mail volumes.

During the second quarter this year, volumes rose to 88.91 million, up from 87.92 million in the same period in 2005, revealed Royal Mail.

These strong results, reported between April and June 2006, are indicative of the current retail climate. Footfall on the high street suffered dramatically during the World Cup and unusually hot summer weather, and increases of online purchases failed to meet the shortfall.

Furthermore, The British Retail Consortium’s Shop Price Index shows that prices are on the rise. August 2006 is the second month the inflation rate has shown a significant year on year increase (1.4 per cent). Much optimism is also predicted for the rest of the year, with Royal Mail’s new pricing structure (Pricing in Proportion) enabling retailers who post more than 90 per cent of their products to save money on two thirds of their mail on average; a saving which could then be re-invested into further direct marketing activity.

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Wincanton strengthens its home delivery offering with the acquisition of Lane Group plc

Building on its existing logistics and home delivery capabilities, leading European supply chain provider Wincanton has today announced the acquisition of Lane Group plc, a UK market leader in home delivery.

The acquisition allows Wincanton to strengthen its position within the growing home delivery market and apply its supply chain management expertise to this sector, improving efficiencies and responding to consumer demands for higher service levels.

Wincanton’s existing home delivery customers such as B&Q and Comet will be joined by Lane’s customer base including brands and retailers Homebase, Magnet, Electrolux and Bosch. Wincanton’s management knowledge and expertise will be integrated with Lane’s existing infrastructure and transport network to support these customers, providing enhanced capabilities and driving best practice.

Martin Taylor, Managing Director of Retail, Wincanton, says: “The opportunities available to Wincanton as a result of the acquisition of Lane are significant and the company’s operation provides a good strategic fit.

“The home delivery market is a growing one, estimated to be worth GBP37.1bn during 2005, driven by the growth in internet shopping and multi-channel retailing. However, this is a sector that is ripe for improvement as the demands on home delivery operations become increasingly complex and smaller companies find it difficult to respond.

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France set for battle over postal liberalisation

France is heading for a showdown with Brussels over plans to open up postal services to competition from 2009, setting the scene for a fresh battle over the completion of the European Union’s single market.

Paris aims to water down the postal plans by proposing measures to compensate incumbent mail operators, including La Poste, the French state-owned post office, for loss of their monopoly.

But Deutsche Post, Germany’s privatised post office, is backing the European Commission’s plan to sweep away the last remnants of an era in which postal services are still dominated by state-owned monopolies. Europe’s postal market is worth more than Euros 90bn (Dollars 115bn, Pounds 60bn) a year and employs 5m people.

With the Commission due to unveil its proposals later this month, the looming battle is widely seen as the next test case for Europe’s ability to push through economic reforms and complete the union’s prized internal market for goods and services.

In France the debate risks becoming a political football. As the country heads into a packed political calendar, Paris wants to avoid any threats to its fiercely guarded postal system before presidential, parliamentary and local elections next year.

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US Transportation Security Agency – air cargo developments

His primary objective for being at the meeting was to explore the use of portals for homeland security. The TSA launched the Freight Assessment System (FAS) in 2004 when it was mandated by Congress.

FAS is an ‘interagency’ initiative (i.e. they work with other government offices such as customs). They have also selected a number of industry partners which include CO, AA, Team Worldwide, DHL GF and Eagle.

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Fortis puts 56m in An Post banking

International financial services company Fortis is to invest 56m in a joint venture with An Post to sell retail banking products though the post office network.

Under the deal, there will be initial capital of 112m with An Post contributing its subsidiaries, One Direct and PostPoint, to the new unnamed joint venture, in which both players will hold an equal share.

Under the agreement, which was signed yesterday, savings, insurance, mortgage and credit card products, among others, will be offered through the 1,400 post offices around the country.

The deal is still subject to Irish and EU regulatory approval and is expected to roll out on a phased basis between March and July of next year.

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GO! expands its European network to Switzerland

Swiss express carrier NES has joined the GO! European network and will represent the brand throughout the Alpine country as GO! Switzerland.

The German express and logistics group, whose full name is GO! General Overnight Service GmbH, said it would be using Niederbipp-based NES’s 160 vehicles, 10 depots nationwide and 50 employees to transport national and interantional parcels.

“As one of the leading and most important express services, NES AG is an ideal partner for us,” explained Ralf-Hans Dierks, CEO of GO! Germany.

“Using the same high quality standards and product range, we will expand the national and European express and document despatch and be able to multiply our parcel volume.”

Dierk said Switzerland bore “enormous potential” for GO! and its European network and that the company was planning to expand further its international product range.

“We will not only extend our European system, but also strengthen our position among the leaders on the express market”, he added.

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