The UK’s largest private parcels group, Yodel, is set to close up to half of its depot networkby the end of next year, as it completes the integration of the former DHL Domestic business.
Yodel was formed last year after the UK’s largest B2C parcels operator, Home Delivery NetworkLimited (HDNL) purchased, through its subsidiary company Parcelpoint, the domestic B2B and B2Cbusinesses of DHL Express (UK) last March, almost doubling the size of the former HDNL business andturning it into a £600 million turnover operation. As part of the deal, around 4,700 people, fivehubs, and 71 service centres moved over from DHL.
Observers predicted that some consolidation of the two operations was inevitable, in order tominimise duplication and make the former loss-making DHL Domestic business profitable, and themagazine Commercial Motor has reported that up to 60 depots from Yodel’s current network of 120were threatened with closure. Only four of Yodel’s eight national hubs, Droitwich, Hatfield, Shawand Wednesbury, are reportedly guaranteed to remain open.
Already this year, the firm has shut its depot at Clifton Moorgate in North Yorkshire, whilelast year sites at Corby, Inverness and Wrexham were downsized, Commercial Motor reported. Asurplus of managers also meant that a number of employees will have to re-apply for jobs, itadded.
No-one at Yodel was available to confirm this today when contacted by CEP-Research, although acompany spokesman has reportedly confirmed that Yodel is “moving towards an integrated singleoperational platform that will allow it to operate effectively and profitably in a rapidly changingmarket”. He described this as “an ongoing project to deliver service, flexibility and choice tocustomers and clients” that the company is “carrying out in a transparent manner and will keep allYodel colleagues and clients fully informed as our plans take shape”.
With Yodel still expecting to handle increased volumes over the next few years, it is unclearhow many redundancies the closures will lead to. At the time of its rebranding last May, Yodel,said it “aims to challenge the delivery market with an absolute focus on the customer” and deliver “ a market-leading offer” for both the B2B and B2C markets. The Yodel name is based on the slogan “Your delivery, your call”.
Yodel is thought to be the second-largest parcel delivery business in the UK, after state-ownedRoyal Mail, delivering more than 200 million parcels per year. Based in Hatfield, north of London,it currently operates a fleet of around 5,000 vans.
