Summer 2008

Two years after acquiring the courier delivery network of catalogue and online retailer JD Williams, TNT Post has sold on its whole UK courier operation to growing home delivery contender Parcelnet. The price paid by Parcelnet has not been revealed.

TNT is known to have experienced difficulties in building up its UK mail division's parcels network, which it describes in its annual report for 2007 as 'a disappointment'. It adds that the division took a 28 million euro charge for what it refers to a 'an onerous contract', which came on top of 20 million euro of operating losses.

The acquisition boosts Parcelnet's courier operation to 7,000 'lifestyle' couriers, which equals the size of the network of its main rival in this market, Home Delivery Network.

It also marks further consolidation in this niche area of home delivery which, though seen as an ideal solution to failed deliveries, is now limited to a small number of key players. Last year Parcelnet acquired the UK courier network of catalogue group Redcats, taking on contracts to deliver to customers of La Redoute, Empire Stores, Vertbaudet and Daxon.

 

Under the new agreement, Parcelnet says it has integrated TNT Post's nationwide courier operation into its existing UK business. The acquisition includes the delivery contract for catalogue and online retailer JD Williams, which TNT Post took on when it acquired Williams' courier operation. Parcelnet says it has absorbed traffic volumes of 12.5 million extra parcels a year 'smoothly and seamlessly'.