DHL Express will invest one billion euros in expansion of its European network, including thecreation of 30,000 customer drop-points by end-2008. This would be double the current number of
retail outlets for business and private customers. The bulk of the investment will be outsideGermany, initially in the main European parcel markets.“The development of these drop-point solutions located near the customer is one of our toppriorities,” declared DHL Express Europe chief Peter Kruse at a press conference at the BVLlogistics conference in Berlin. “Our aim is not just to retain but to extend our European marketleadership.” Target customers for the “first and last mile” network included B2C shippers, andsmall businesses and private customers with low parcel volumes.
DHL Express will increase its current 15,000 retail outlets in Europe to about 20,000 byend-2007 and to 30,000 by end-2008. In Germany, DHL Express will operate through the existing12,000 Deutsche Post post offices, the planned 300 shop-in-shop “Post Points” and the network ofautomated Pack Stations for parcel drop-off and collection that is due to grow from 600 to 1,000locations.
Elsewhere in Europe, a network of “DHL Service Points” within central locations such assupermarkets, petrol stations and retail chains will be set up. Such outlets already exist in sevencountries (Italy, Spain, the UK, Sweden, Poland, Netherlands and Switzerland). The first two wavesof network expansion will include about 2,000 drop-off points in the UK, 1,200 in Italy, 900 inSweden, 800 in Spain and 700 in the Netherlands while France and smaller markets will follow in athird wave by 2008. The Deutsche Post World Net subsidiary will offer two standardised parcelproducts under the DHL Express4You name in these outlets.
Other investment will flow into infrastructure and IT. This will include the DHL Fulfilmentterminal at Staufenberg (central Germany) used by online retailer Amazon, 100 million euros for anexpanded logistics centre for retailer Tchibo in Bremen, and 40 million euros for a new terminalfor TV shopping channel HSE24 in Greven (northern Germany).
Asked about the status of DHL integration in Europe following recent critical comments by DPWNchairman Klaus Zumwinkel, Kruse stressed this had referred to two countries, the UK and France. InFrance, three networks gained through acquisitions had been merged into one at the start of theyear which had led to quality problems. In contrast, in other regions such as Central and EasternEurope, integration had gone far more smoothly than expected, he noted.
Overall, DHL planned to reduce the 1,100 terminals in its network in 2003 to about 700 by 2007,Kruse said. More than 200 of the 400 closures had already been completed. Kruse declined to commenton the planned entry of Red Parcel Post into the German market, beyond stressing that DHL wouldcontinue to offer competitively priced products regardless of whether it faced “one competitor moreor less”.
