Year: 2006

Internet shopping hits GBP3bn in November

UK internet retail sales reached GBP3 billion in a month for the first time in November, as Britain’s 25 million online shoppers reaffirm their affinity with online Christmas shopping.
IMRG estimates that GBP3,260,000,000 was spent online during the month, at an average rate of GBP4.57 million per hour, approximately 45% (44.7%) more than in the same period last year.

November’s internet sales were more than half a billion pounds higher than those of the previous month, when the IMRG Index recorded a value of GBP2,729 million for October. This increase was ten times the average monthly increase of GBP50 million recorded during the first ten months of 2006.

During the same 10-month period two years ago, in 2004, the average growth rate was just GBP16 million per month.

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An Post seeking 15% rise in standard stamp price to 55c

The Commission for Communications Regulation (ComReg) has today launched a public consultation following An Post’s recent application for an interim price increase in the price of the basic stamp. ComReg is the National Regulatory Authority for the postal sector in Ireland and its prior approval is required for postal rate changes in the reserved area.

If approved, prices for domestic standard letters (up to 50g) would increase to 55c; however, prices for mail in the 50-100g category (for example, a typical large letter) would decrease from 60c to 55c. In addition, business customers using An Post’s Ceadúnas (Permit) services or meter franking machines would also receive a discount of 1c per item. The effective date of any interim price increase, if approved, would be 1st March 2007.

An Post outlines in its application that it has, or will, absorb significant cost increases during the period from August 2003 to May 2007 (including wage increases of 18.9% under National Wage Agreements) and that it will have to meet further cost increases over the next 12 months including wages, energy and fuel costs; hence, its requirement for a price increase.

Overall, and on the basis of An Post’s application, it is estimated that the weighted price increase proposed for all ‘letter’ products is 9.6% based on the prices concurred with in August 2003. This compares with a movement in the Consumer Price Index (CPI) of 10.3% over the 42 months ending November 2006.

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2,500 post offices to be axed in the UK from next summer

The government yesterday unveiled plans to close 2,500 rural and urban post offices over 18 months – the fastest closure programme in the history of the network.
The cuts, which are expected to start next summer after national and local consultations, will slash the network to about 11,700 branches, fewer than half the peak of 25,000 in the 1960s. The trade and industry secretary, Alistair Darling, said a GBP1.7bn support package would be provided to fund rationalisation and maintain the GBP150m-a-year payments to the rural network at least until 2011.
He told the Commons that the post office network was losing GBP4m a week and had 4 million fewer customers than two years ago. The “big problem,” he said, was that “people are simply not using post offices as they once did … There is widespread recognition that the current size of the network is unsustainable.”

Royal Mail said it welcomed the proposals and would study their impact on its wider funding needs, which include new investment in the letters business, funding for the pension fund deficit and offering shares to employees.

Mr Darling outlined a series of criteria which the new network would have to meet: 99% of the population must be within three miles of an office and 90% within one mile. In deprived urban areas 99% of the population must be within one mile while in remote areas at least 95% should be within six miles.

The slimmed-down network will be supported by some 500 new outlets, including pubs, churches and village halls and even mobile offices.

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ANC deliver the HR Director of the Year 2006

Wendy Dean, HR Director for the express parcel carrier ANC, was awarded the Personnel Today ‘HR Director of the Year’. The awards took place at the Grovesnor Hotel in London and hosted over 1200 human resources professionals from the UK. These awards, judged by the HR industry, received more entries this year than ever before, making the win even more significant. The win comes as a result of her work to integrate the mission statement ‘Delivering Peace of Mind’ into the company culture, which has been a huge success and embraced by employees at all levels. ANC were also delighted to be nominated as a finalist for the ‘HR Strategy in line with Business’ award but narrowly missed out to The AA Group.

Angela O’Connor Executive Director of HR for the National Policing Improvement Agency, last year’s winner of the HR Director award judged this year’s competition, she said “Wendy is clearly at the heart of the business and has been given responsibility for a number of wide ranging areas. She has a clear understanding of how to bring value back into the business through a range of interventions that can easily demonstrate benefits to the bottom line”. Wendy said “I am totally overwhelmed by the award and it is a true reflection of the support and encouragement I have had from the board at ANC. I am also delighted for my team who nominated me for the award, and without their help this simply would not have been possible.” Wendy has been employed with ANC for over 16 years and is responsible for over 1,800 employees. During the past three years alone Wendy and her team have reduced absenteeism and employee turnover significantly. Wendy has also started a driver training division and begun developing the ANC Training Academy for all employees.

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ANC wins national award in road safety

ANC continues its winning streak with an exceptional achievement at the Brake Road Safety Charity Awards for Excellence 2006. Driver Training Manager, Mark Shaw, left with an armful of awards, including ‘Long Standing Commitment to Road Safety’. This award in particular was a huge achievement for Mark who has worked in the industry for nearly 30 years. Accepting his award he said “it is a real honor to receive this award, judged by safety professionals and my peers. It shows that our procedures and training courses demonstrate high standards and are effective in the campaign for road safety and greater awareness”.

Other awards include high commendations for:

– Road Risk Manager of the Year,
– Company Driver Safety, and
– Safety in the Community.

The Fleet Safety Forum Awards for Excellence aim to promote best practice among companies of any size operating vehicles of any type. The awards reward professionals who have worked significantly to improve the safety of vehicle operations, and by promoting award winners to the industry.

ANC’s success in the four categories can be put down to the prevalence of a Driver Safety Culture which incorporates, pre-employment assessments, on the job assessments for all employees who drive as part of their role, a proactive insurance department, improved accident reporting and back to work assessments.

ANC continues to work towards excellence and is now running training courses in LGV driving.

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Postwatch response to DTI’s post office closure proposals

On 14 December 2006 the DTI launched its consultation on rationalising the current post office network. The consultation proposed funding the closure of 2,500 post offices throughout the UK. Postwatch has today submitted its response, which includes 99 recommendations.

The Postwatch response can be viewed at www.postwatch.co.uk under policy documents. The executive summary sets out Postwatch’s key recommendations.

Millie Banerjee, Chair of Postwatch, said: “We had to submit a detailed response, with many recommendations, because the DTI failed to explain the thinking behind its proposals. The DTI did not answer even such basic questions as how they arrived at the figure of 2,500 closures, why they proposed the access criteria set out in the consultation and how they plan to avoid additional unplanned closures. We have had to say so much because the DTI said so little.

“The weaknesses of the consultation may actually have made contributors think harder and could lead to a better set of decisions. Whether this happens is now up to DTI ministers. They must consider and respond fully to the complex and important issues that have been raised by us and others.

“We all want the DTI’s decision document to be a thorough, well thought out piece of work. It must unambiguously explain to customers and their representatives how and why the pain ahead will eventually result in a viable and sustainable, if somewhat smaller, nationwide network of post offices that provides reasonable access for all.

“DTI Ministers have said their decision will be made within 3 weeks. This could give the impression, perhaps wrongly, that decisions have already been taken. But it is, of course, the quality of the decision, not the speed at which it is made, that counts. Ministers will need to demonstrate that they have given the many hundreds of responses the careful consideration they deserve.”

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Sorting the UK post office network

The closure of any post office is a loss to the customers and community involved. But Postwatch recognises that the current situation of increasing financial losses and fewer transactions cannot continue.

To let the current drip-drip of unplanned closures continue would be irresponsible and would undoubtedly lead to some areas losing access to post office services. The government’s consultation on future funding and structural arrangements for the post office network is the first step in putting in place a strategic plan.

For over a year, Postwatch has been urging the government to propose a sustainable way of meeting customers’ post office needs. In response to the consultation, Millie Banerjee, Chair of Postwatch, said: “Today’s announcement and consultation are the first steps in providing a clear view on how the post office network will look in the future. We have consistently urged the government to provide that clarity and are pleased we now at least have proposals to work on.

“This is not a simple numbers game of how many post office buildings are to close. The focus should be on ensuring customers have access to post office services. Solutions will vary from location to location. But, for example, if a number of expensive-to-run, seldom used post offices can be replaced with a cost-effective mobile service that meets communities’ needs – doesn’t that make sense?

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DHL switching to a customer-centric database model: NCDM

DHL is switching from a product-centric database model to a customer-centric one.

This was a key takeaway from Susanne Albert, senior manager of database marketing at Plantation, FL-based DHL Express, who spoke on the 2006 National Center for Database Marketing panel, “Strategy & Tactics for a Successful Shift to Customer Centricity.”

“Back in 2003, DHL was relatively new in the U.S. and we really had no choice but to utilize mass marketing for our brand transformation when we acquired Airbone Express,” Ms. Albert said.

“[But] today, we are implementing some very strong customer marketing programs, whereby we are segmenting not only by channels, but by customer behavior,” she said. “We still have a long way to go in the U.S. in terms of identifying our customer segments and understanding the kind of clusters required for customer-centricity.”

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