GLS Germany will increase prices for domestic and international shipments by 2.8% on average andinvest over €50 million in its operational infrastructure this year.
The price increases for business customers, which come into effect on 1 April 2010, respond tothe dramatic price decline in 2009, the company announced. Consumer prices at the company’s ParcelShops will remain unchanged.
“We succeeded in maintaining our parcel volumes in Germany during the last year,” explained GLSCEO Rico Back. “The revenues, however, have declined.” He claimed the reason for this was theruinous price war which negatively affected the whole CEP sector.
Due to price wars in last year, GLS either lost customers or accepted lower prices in certaincircumstances taking into account the economic situation.
“It’s a fact that the massive price decline jeopardises development programmes and investmentsof the company and thus gambles with the quality of parcel delivery service,” Back added. “We needto reverse this trend as this development is not in favour of our customers.”
He said GLS has drawn its conclusion from the situation and will increase prices for itsdomestic and international shipments by 2.8% on average as a result.
At the same time, GLS will invest again in its pan-European network. This year, over €50 millionare designed for purchasing premises, constructing and expanding buildings as well as thedevelopment of IT and related customer services. “We are going to boost automation and furtherdevelop IT to simplify the communication between the shipper and the recipient,” Back continued. “Thereby, we rationalise our processes without saving on the quality.”
GLS said it already reached a good level in terms of production costs.
Currently, GLS is showing a slight upward trend. “Volumes are increasing gradually,” Backconfirmed. “Customers are partly coming back with new business reviving.”
