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DPD: We are experiencing the biggest boom in online retailing in the UK's history

18 Jun 2020, 10:24

https://postandparcel.info/123031/news/ ... s-history/


Parcel delivery firm DPD has announced it will invest £200 million this year to expand its next-day parcel capacity, including £100 million on vehicles, £60 million on 15 new regional depots (10 more than originally planned in 2020) and the remainder on technology.

It has also announced 6,000 new UK jobs and a major infrastructure investment in response to the unprecedented boom in online shopping caused by Covid-19.


The new jobs will include delivery and HGV drivers, warehouse staff, management positions and support staff, including mechanics.

DPD is forecasting the growth to continue this year, despite shops reopening, as households continue to rely on online deliveries for a greater proportion of their shopping, including food and drink.

The new infrastructure investments and recruitment will be in place before Black Friday as the firm prepares for what it predicts will be the busiest Cyber Weekend and Christmas period, in its history.

Dwain McDonald, DPD’s CEO commented:”We are experiencing the biggest boom in online retailing in the UK’s history and we are making this unprecedented investment in our infrastructure and people to ensure we can continue to meet the high levels of demand for our services.

“DPD has been one of the fastest growing major companies in the UK in the last 10 years, due to the growth in e-commerce. But what we have seen in recent months is potentially a much more significant shift in behaviour, and we believe elements of it will be permanent. As a company, we’ve been dealing with rapid growth and ongoing investment cycles for a long time, but this is a very significant moment.

“I do think the High Street will bounce back from where things are now, but we have to base our modelling on our conversations with retailers and their projections. It looks like there will remain a much greater reliance on e-commerce in the future – that’s going to be our ‘new normal’. This investment and expansion mean that we will continue to be right there for our retail customers, alongside them, with the capacity to cope with the demand they are seeing online.

“Since this began, we have been handling parcel volumes more akin to the festive seasonal peak than this time of year. For example, volumes over Easter were double last year. The business has performed incredibly well, with service standards at record high levels, as more people have been at home to receive parcels and the roads have been quieter. All this while the operation has had to start scaling-up and adapt to social distancing and contactless deliveries.

“I’m incredibly proud of what our team has delivered during this crisis, including our work with the NHS and food retailers, and I have no doubt that they will continue to provide our customers with a market leading service.”

DPD and B&Q owner to hire 7,500 as demand surges

18 Jun 2020, 14:13

https://www.bbc.co.uk/news/business-53079884

Delivery firm DPD and B&Q owner Kingfisher are hiring thousands more staff in the UK to help meet the surge in demand for goods bought online.

DPD plans to recruit 3,500 drivers and 2,500 support staff, including mechanics and parcel sorters.

Kingfisher says it will recruit 3,000 to 4,000 workers, about half of them in the UK.

With High Street shops closed recently because of the coronavirus, far more shoppers want goods delivered.

DPD boss Dwain McDonald described the lockdown period as the "biggest boom in online retailing" the UK had ever seen.

"Since this began, we have been handling parcel volumes more akin to the festive seasonal peak than this time of year," he said.

Kingfisher said online sales at B&Q and Screwfix, which it also owns, had more than tripled during April and May, the first two full months of lockdown.

Kingfisher chief executive Thierry Garnier said the firm's new recruits would be "temporary" during the summer, depending on what happened to demand after coronavirus measures were eased.

'New normal'

DPD said it expects strong growth to continue, even as shops reopen. It is investing £200m in vehicles, regional depots and handheld devices for drivers to record deliveries.

"I do think the High Street will bounce back from where things are now, but we have to base our modelling on our conversations with retailers and their projections," said Mr McDonald.

"It looks like there will remain a much greater reliance on e-commerce in the future - that's going to be our 'new normal'."

The lockdown brought many people to online shopping for the first time, according to Helen Norman, editor of the industry publication Postal and Parcel Technology International.

"A lot of people have just started shopping online during the pandemic. People are experiencing it for the first time and they're going to stick with it because it's easy," she said.


Steve Martin, 39, is a delivery driver working in Enfield, North London. He says the workload has increased dramatically during the coronavirus lockdown.

"Before lockdown, I used to deliver 200 parcels a day. Now it can be up to 300 parcels," he said.

"Everyone's got a step metre on their phone. Before lockdown I used to do 12,000-to-14,000 steps a day. In lockdown I managed to get up to 27,000 steps a day."

Steve says the company he works for paid drivers an extra £18 a day at the start of lockdown, to cover the extra workload. Now his pay has returned to the pre-crisis rate, but "the volume of parcels and deliveries are still up," he said.

Management consultants McKinsey say parcel deliveries to consumers shot up 40% during lockdown. The firm predicts the level of online orders will decrease as countries reopen High Street stores, but there will be 20% more online shopping deliveries this year than in 2019.

"We expect some of the online surge for the retail sector to stick but not at the levels seen at the start of the lockdown," said Florian Neuhaus, a McKinsey partner.

DPD isn't the only delivery firm expanding rapidly to cope with the recent surge in demand.

1.3 billion parcels

Ideal Direct Recruitment is an Essex-based firm that connects mostly self-employed drivers with the large logistics firms that Amazon and other retailers use for deliveries.

General manager John Carter said demand had increased four-fold during the coronavirus crisis.

"There's been a massive increase in manpower needed since Covid. We have supplied logistics companies 100 people a week for interviews during the lockdown. Before, we were supplying 25 people a week," he said.

DPD's growth is a boon for its owner, the French state-owned postal company, La Poste. The La Poste Group is now the second largest express parcel delivery firm in Europe, delivering 1.3 billion parcels in 2018.

But regular parcel deliveries to homes may not be sustainable long term, and could one day be replaced by deliveries to lockers instead, says Ms Norman.

"Many experts say delivering to lockers is the future, that's the only way delivery firms will be able to cope with volumes because it would cost them so much to deliver to every single house," she said. "Drivers can waste 15 minutes looking for a house."

DPD and B&Q owner to hire 7,500 as demand surges

18 Jun 2020, 14:15

https://www.dpd.co.uk/content/about_dpd ... ailers.jsp

6,000 new UK jobs as DPD scales-up to meet 'new normal' demand from online retailers
    £200m of new investment includes vehicles and 15 new regional depots,
    2,500 new full-time jobs including depot, hub and management positions,
    3,500 new drivers being recruited nationwideLeading parcel delivery firm DPD has announced 6,000 new UK jobs and a major infrastructure investment in response to the unprecedented boom in online shopping caused by Covid-19.

The firm, which delivers for many of the UK's leading retailers, will invest £200m this year to expand its next-day parcel capacity, including £100m on vehicles, £60m on 15 new regional depots (10 more than originally planned in 2020) and the remainder on technology.

The new jobs will include delivery and HGV drivers, warehouse staff, management positions and support staff, including mechanics.

Even before lockdown restrictions were announced in March, demand for DPD's seven day a week, nationwide next-day delivery service had risen significantly as people started increasing their reliance on online shopping. The trend has continued, with existing retail customers experiencing an online sales boom and new customers developing online propositions to maintain sales during lockdown.

DPD is forecasting the growth to continue this year, despite shops reopening, as households continue to rely on online deliveries for a greater proportion of their shopping, including food and drink.

The new infrastructure investments and recruitment will be in place before Black Friday as the firm prepares for what it predicts will be the busiest Cyber Weekend and Christmas period, in its history.

Dwain McDonald, DPD's CEO commented, "We are experiencing the biggest boom in online retailing in the UK's history and we are making this unprecedented investment in our infrastructure and people to ensure we can continue to meet the high levels of demand for our services.

"DPD has been one of the fastest growing major companies in the UK in the last 10 years, due to the growth in e-commerce. But what we have seen in recent months is potentially a much more significant shift in behaviour, and we believe elements of it will be permanent. As a company, we've been dealing with rapid growth and ongoing investment cycles for a long time, but this is a very significant moment.

"I do think the High Street will bounce back from where things are now, but we have to base our modelling on our conversations with retailers and their projections. It looks like there will remain a much greater reliance on e-commerce in the future - that's going to be our 'new normal'. This investment and expansion mean that we will continue to be right there for our retail customers, alongside them, with the capacity to cope with the demand they are seeing online.

"Since this began, we have been handling parcel volumes more akin to the festive seasonal peak than this time of year. For example, volumes over Easter were double last year. The business has performed incredibly well, with service standards at record high levels, as more people have been at home to receive parcels and the roads have been quieter. All this while the operation has had to start scaling-up and adapt to social distancing and contactless deliveries.

"I'm incredibly proud of what our team has delivered during this crisis, including our work with the NHS and food retailers, and I have no doubt that they will continue to provide our customers with a market leading service."

-ends-

DPD and B&Q owner to hire 7,500 as demand surges

18 Jun 2020, 14:22

Means we are in the s**t financially would DPD consider a take over?

DPD and B&Q owner to hire 7,500 as demand surges

18 Jun 2020, 20:25

2yearpostie wrote:Means we are in the s**t financially would DPD consider a take over?


I can't see the monopolies commission allowing it.

DPD and B&Q owner to hire 7,500 as demand surges

18 Jun 2020, 20:45

We can`t be in s**t financially speaking, Rm delivers much more parcels than DPD, plus letters, flats, door 2 doors, collections income, etc etc.

Rico always played the poor card but he also declared a month ago that we have 800 milions in banks and 900 milions credit facility.

And while he sat on all that money he couldn`t afford 100 milions to cut 1 hour off the working week and honour the 4 Pillars Agreement :arrrghhh

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