German parcels carrier Hermes Logistik Group has achieved record revenues and volumes in theyear ending February 2006, and has increased its share of the German CEP market. The Hamburg-based
firm, which has agreed a strategic alliance with TNT, is meanwhile pressing ahead with plans for aEuropean B2C network.Hermes Logistik, a subsidiary of the Otto group, one of Europe’s largest mail-order companies,said it transported 213 million parcels and generated revenues of €908 million (€782 million netrevenues) in 2005/06. Hermes carried 192 million parcels and had turnover of €710 million in theyear ending February 2005.
Hermes Logistik said it now has a 35% share of the German B2C parcels market and has quadrupledits share of the C2C market to 22% within a year. The main success factor was the increasingcustomer use of its 11,000 PaketShops, which operate as “shop-in-shop” collection and drop offpoints for consumers and small businesses.
“The strategic positioning of the Hermes Logistik Group has completely paid off,” commentedmanaging director Hanjo Schneider. “We will further strengthen our market position from a Europeanperspective in the next few years.” Hermes said it was working on the creation of a European B2Cdistribution network, and aimed to increase its German market shares this year to over 25% for C2Citems and 37% in the B2C sector.
In December 2005, Hermes Logistik and TNT announced a strategic alliance for B2C parcelservices, initially in Germany and due to start in the first quarter of 2006. A joint subsidiarywould be founded in Germany, with TNT using Hermes’ land transport network and Hermes using TNT’shub capacity. TNT express products would be offered through the Hermes’ PaketShops.
