Tag: UK

Retail Viewpoint – Retailers recognise small can be beautiful

Posted by | Sep 11, 2007 | |

It appears that small could become increasingly beautiful in retail land judging by the interest shown by merchants in smaller outlets.

For many years it has simply been about getting ever-bigger sheds near large conurbations while small stores in small towns have been left to remainder book sellers and charity shops.

But we could now be experiencing something of a renaissance in the smaller outlet. The mobile phone retailers have realised that saturation has been reached in the larger towns around the UK and are now focusing their attention on servicing lesser towns through stores with reduced footprints and in the case of O2 it is tying this in with franchising whereby it can run these stores from lower volumes.

B&Q is the latest operator to turn its attention to smaller outlets as it looks to better tailor this part of its portfolio in what are typically smaller towns. The ability to successfully edit the range of such stores to local markets is of paramount importance and ultimately determines the success or failure of smaller stores. But where retailers today have assistance with this tough task is through the use of in-store kiosks with broadband connections where orders can be place by customers for home delivery.

There is also a rekindling of interest with smaller stores in the US where the forthcoming opening of Tesco’s chain of smallish neighbourhood food stores is leading to all the main US supermarkets – including Wal-Mart, Safeway and Whole Foods – to take a look at copying the format and using them to compliment their massive sheds.

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Nightspeed integration boosts Amtrak’s turnover to £100m mark

Posted by | Sep 11, 2007 | |

Amtrak Express Parcels has completed the integration of overnight parcel carrier, Nightspeed, which Amtrak acquired in 2005. The move has seen Amtrak’s turnover increase to £100 million, and its customer base increase to 8,500 customer accounts.

The expanded Amtrak business now incorporates 25 former Nightspeed locations with a network of 100 depots.

Amtrak has retained the Nightspeed name for specialist services not previously offered by Amtrak, including the high security overnight delivery service – Nightspeed Secure Express.

The integration has enabled Amtrak to re-structure its network to improve regional coverage, with a number of new regional depots and a new North West of England hub to handle extra capacity. The Amtrak commercial vehicle fleet has also been expanded, and now includes 2,000 delivery vans.

The Nightspeed acquisition has boosted Amtrak’s presence in a number of key B2B sectors, providing additional volumes that compliment Amtrak’s home delivery services.

According to Amtrak CEO Jonathan Smith, this is the first time two UK parcel networks have been fully integrated.

“We could have taken an easier route but we wanted to create a bigger and stronger business by building on Nightspeed’s strengths,” said Smith. “Now that the integration is complete, we can capitalise on the business potential that was so evident at acquisition. The integration has not only given us a boost in capacity and an increase in volumes, but also entry into some appealing new markets such as high security express services and government mail.”

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Parcels Losing Weight

Posted by | Sep 10, 2007 | |

It’s nearly two-thirds into 2007 and shippers are still trying to get a handle on how to handle dimensional rate pricing for parcel shipments.

UPS announced the plan late last year and rolled it out in January, granting some shippers waivers that have just ended. FedEx, DHL and even the U.S. Postal Service soon followed suit.

Dimensional pricing is likely to further fade the line between air express and ground parcel service. The new metric also could affect trucking operations and alter freight classification standards as the express and parcel carriers look to bring the disciplines of that side of the business into their growing less-than-truckload subsidiaries.

Whether they take a dim view of the changes or not, shippers are already adjusting their shipping patterns to pare down what could be large cost increases under older standards.

UPS contends dimensional costing offers shippers something they’ve clamored for – a simpler pricing method. Dim-weight pricing, the company says, more accurately reflects the true costs for handling and delivery.

Some industry analysts say the impact of the new pricing standard has yet to be fully felt.

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Royal Mail Talks End – No Agreement

Posted by | Sep 10, 2007 | |

As private talks between the CWU and Royal Mail officials come to an end, somewhat unexpectedly, no deal has been reached.

Royal Mail saw significant losses this year after many of its large customers moved their sorting requirements to rival mail handlers, and the losses look set to continue as Royal Mail is left effectively holding the baby – the Universal Service Agreement, Britain’s backbone final mile postal deliveries.

More disturbing perhaps is that whilst Royal Mail struggles to stand its ground after mail liberalization was effectively bulldozed through, there seems to be a hardcore of postal workers that are convinced that working to their times (a more acceptable way of saying ‘work to rule’) will see some divine presence appear from the blackness (presumably in the shape of Gordon Brown) and save them all.

The CWU have lost the battle so far and no amount of strikes or working to rule are likely save jobs or see any big pay rises in a business that is seeing large chunks of its most profitable work eaten up by rivals. It either works smarter and more efficiently or it fails. The likelihood of Royal Mail being broken up to maintain the Universal Service and allow Royal Mail to compete for business mail seems greater than ever.

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Royal Mail and CWU push back talks deadline

Posted by | Sep 10, 2007 | |

The direct mail industry is on tenterhooks, following the extension of the 4 September deadline for talks between the Communication Workers Union (CWU) strike and Royal Mail.

Following four weeks of talks, in which strike action was suspended, this recent round of negotiations has been given until 9 September to broker a deal.

The extension until Sunday will then be followed by a further meeting on Monday. Neither party is commenting on the progress of the talks until then.

CWU campaign manager John Colbert told printweek.com: “There is a complete communications ban concerning these talks until Monday at the earliest.”

This summer’s strike action was a response to the Royal Mail’s modernisation plan and disrupted mail deliveries across the country and further action will cause more misery to direct mail companies.

The CWU claims Royal Mail’s plans will result in a permanent reduction in customer services and is an attack on postal workers’ jobs, pay and conditions.

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