Spanish CEP operators aim to deliver peak season growth

Parcel companies in Spain are hoping to deliver record volumes during the current peak season thanks to strong Black Friday e-commerce sales and after investing in additional capacity and new services over the past few months.

E-commerce parcel volumes in Spain reached 8 million on the Black Friday weekend followed by 13 million on Cyber Monday, according to a report by Spanish logistics portal Cadena de Suminstro, citing a Sendcloud survey of 25,000 online shops.

Total parcel volumes could increase by 6.8% to 108 million items between Black Friday and January 6 (the traditional day for giving presents in Spain), according to Logistics and Transport Association UNO.

Another promising growth sign was a 13.9% year-on-year rise in air cargo tonnage through Spanish airports in November, leaving tonnage up by 7% year-on-year over the first 11 months of the year. There were particularly strong increases at Madrid and Zaragoza airports.

“Responsible” Correos

Peak season growth may not be equally spread throughout the country’s leading delivery companies, however, judging by diverse business developments. Ahead of Black Friday, for example, for the fourth year in a row, Correos appealed to Spaniards to “think responsibly” about using express deliveries, claiming that the CO2 footprint of a 72-hour parcel delivery is 30-40% lower than that of an ‘urgent’ delivery thanks to sufficient time for volume consolidation, route optimization and other measures.

The state-owned postal operator, which is reportedly making heavy losses and has yet to publish its 2022 financial results, remains the biggest parcels delivery company in Spain but appears to be losing popularity among consumers.

A recent consumer survey by the Spanish competition authority CNMC found that 54% of Spaniards sent a parcel through Correos in the first half of 2023, which was four percentage points lower than the same period of last year. In contrast, SEUR rose by five percentage points to 14%, while MRW was at 5.8% and DHL at 3.9%.

SEUR expansion

For its part, SEUR, which expects to deliver more than 30 million parcels (between November 13 and January 12), has geared up for this year’s peak season by hiring 3,200 seasonal workers, expanding its sorting space by 50,000 sqm (including more temperature-controlled SEUR Frío space) and adding 2,000 vans to its fleet of 3,500 vehicles.

The Geopost subsidiary has expanded its Pickup network to more than 5,000 stores throughout the country, including more than 900 lockers. During 2024, the company plans to expand the Pickup network to 8,000 stores, including 1,500 lockers. It has also launched sustainability-focused services, including consolidated weekly deliveries in Madrid and a BuyBack service to recondition and reuse electronic devices.

David Sastre, Chief Customer Officer, said: "At SEUR, we understand that flexibility and convenience are essential for our customers, especially in times of high delivery volume such as Black Friday and the holiday season. With our Pickup network, which now exceeds 5,000 stores, we offer a solution that is perfectly adapted to the new dynamic lifestyles of consumers. These points allow us to consolidate our position as a leader in logistics solutions and exceed our customers' expectations.”

2-digit growth at GLS

Meanwhile, GLS Spain has high hopes for the current peak season and expects to increase its volumes by 18% compared to the same period of last year. It has already generated average monthly growth of 20% so far this year, driven by the textile sector.

The parcel company is seeing high growth in out-of-home (OOH) deliveries, which are likely to total 15 million this year compared to 10 million in 2022. Deliveries to Parcel Shops totalled 1 million in October and a record 1.5 million in November.

Luis Doncel, MD of the Iberia & Ireland Region, said: “The convenience delivery model is gaining momentum and we can only welcome this and continue to drive it forward as a company and as a leading logistics company. The record numbers at our Parcel Shops are a clear indicator of this much-needed model change. At GLS, we will continue to promote alternative deliveries, as well as deliveries with low-emission vehicles, as part of our commitment to responsible and efficient logistics practices.”

DHL investments

For its part, DHL eCommerce Iberia (which recently re-branded from DHL Parcel in Spain and Portugal) has expanded sorting capacity at its Getafe hub, near Madrid, with a €25 million investment in a new automated sorting system.

The division’s CEO, Pablo Ciano, said at the recent opening that a similar system is being installed at present at the Barcelona hub as part of an overall €100 million, three-year investment in the country. Other investments are taking place in Lisbon and Santiago de Compostela, according to Spanish media reports.

MRW upturn

Meanwhile, low-profile MRW announced it had seen a 30% upturn in volumes since the start of November following the very early start of Black Friday (Black Day) offers this year. The Barcelona-based company, which delivers about 70 million parcels a year and has annual turnover of about €1 billion, has taken on 3,000 additional workers for the current peak season to support its workforce of 10,000 people, and added 400 new delivery routes.

Nacex growth

Another company with growth ambitions is Nacex, part of the Logista Group, which expects to deliver between 4-6% more parcels during the Black Friday campaign than in 2022. The express parcel delivery company, which has 3,500 staff, has increased its workforce by a third for peak season, added more vehicles to its fleet of over 2,000 vans, and expanded its Nacex.shop network of PUDO points to more than 2,600 locations. In October, the company opened a new branch in Murcia to expand its capacity in south-east Spain.

"Our aim is to be able to take on all shipments during the Black Friday and Christmas campaigns when commercial activity intensifies and the number of shipments and returns increases significantly. With the expansion of our team, we guarantee our customers optimal management and total reliability in the delivery service,” said Manel Orihuela, General Manager of NACEX.

CTT Express e-commerce contracts

Another operator with big ambitions is CTT Express, the subsidiary of Portuguese postal group CTT, which claims to have the most PUDO points in the Iberian Peninsula with nearly 13,000 PUDO points, including 10,000 in Spain.

The company is positioning itself as a provider of deliveries across both Spain and Portugal. For example, it is delivering Temu orders in both countries as well as for e-commerce platform Shopify.