British distribution company Connect Group has signed up major UK retailer ASOS for its “Pass My Parcel’ Click & Collect service as a second customer after Amazon while it announced solid revenue growth of 6.4% in the 19 weeks up to 9 January 2016.
“Pass My Parcel delivered an excellent operational performance over the peak Christmas period remaining on track with its current expansion plans. The launch of a mobile enabled returns collection service, with a QR (Quick Response) code sent to customers' mobile phones, is the next step in the group's strategy to grow Pass My Parcel,” Connect Group said in a trading statement today.
The group originally launched the Click & Collect service in October 2014 at more than 500 independent newsagents with Amazon as its first client. Based on an innovative twice-daily distribution model (daily only on Sundays), parcels are distributed to participating independent retail outlets, seven days a week, 364 days a year. This premium service enabled Amazon to provide deliveries to its customers within 12 hours after placing an order, across the same day and next day delivery time frames.
Meanwhile, the Pass My Parcel network of parcel shops has been extended to 3,000 locations. With ASOS as its second customer, Connect Group will initially trial the service in 20 retail outlets to be rolled out across the remaining 3,000 outlets over the coming months. In a longer term, it is scheduled to be scaled up to a nationwide network of 5,000 – 6,000 stores in total.
Connect Group stressed that its “overall performance continues in line with management expectations”. The group revenue increase of 6.4% “included the benefit of a full period's strong contribution from the Parcel Freight division following the acquisition of Tuffnells in December 2014. Total Group like for like revenues decreased 2.3%.”
The Connect Parcel Freight (Tuffnells) division’s total and like for like revenues both increased by 12.1% with continued positive market growth and new customer wins. The division's performance remains in line with management expectations, with strong growth under the group's ownership.
The strong results of the Parcel Freight division surpassed by far the performances of Connect Group’s other divisions including Connect News & Media and Connect Books which posted partial revenue declines as well as Connect Education & Care.
