Affiliate News

Precision News Round-Up: 4 December 2020

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Retail

JOHN LEWIS CEASES INTERNATIONAL EXPANSION STRATEGY FROM DECEMBER

John Lewis has announced that it is ending its international expansion strategy. The retailer will stop taking orders for international delivery from next week. In 2016, the department store accelerated its strategy of international growth. Until the changes come into force, consumers can order for delivery to 30 international markets. From December 9, John Lewis will deliver to just one country — the UK as the retailer has decided to focus on its local customers.

The company closed its store at Heathrow Terminal 2 during the first coronavirus lockdown and one of its eight shops was permanently shut in June. Brexit uncertainty has led a number of retailers to open separate logistics operations in the EU to guarantee that there is little overlap between operations within the EU and in the UK. John Lewis may represent a step in the other direction. For more details, please see Internet Retailing.

ARCADIA GROUP COLLAPSES INTO ADMINISTRATION

Sir Philip Green’s Arcadia Group, the owner of household names including Topshop, Miss Selfridge, and Dorothy Perkins, collapsed into administration on Monday. As a result, 13,000 jobs are at risk. However, no redundancies have been made. The group’s stores and website will continue to trade, protecting Arcadia from creditors while it seeks a buyer for all or parts of the company. Ian Grabiner chief executive of Arcadia said that the impact of Coronavirus and forced store closures has affected trading across all of the group’s brands. For more information, please see The Guardian.

Global Trade

EUROZONE BUSINESS ACTIVITY CONTRACTS, BUT OPTIMISM IMPROVES

Last month, eurozone business activity declined as governments across the bloc imposed new restrictions to curb a second wave of coronavirus infections. In November, IHS Markit's composite PMI declined to 45.3 in November from October's 50 — the level separating growth from contraction.

A PMI covering the bloc's services industry fell to 41.7 in November. This is a contraction of October’s 46.9, as well as the third month below the 50 break-even line. Furthermore, this was its lowest reading since May, when the virus first began spreading across Europe.

However, due to the prospect of a coronavirus vaccine as well as the likelihood of additional support from the European Central Bank, optimism for the coming year has improved. Quarterly growth forecasts for 2021 were upgraded and the euro zone composite future output index jumped to 60.4 from 56.5. For more details, please see RTE.


NEGOTIATIONS ON POST-BREXIT DEAL AT THE END

Irish Minister for Foreign Affairs Simon Coveney has said that Brexit talks are coming to an end. If the two sides cannot reach an agreement, the future EU-UK relationship will shift to a no-deal scenario. Mr Coveney said that when the transition period ends at the end of the month, there is no legal process in place to extend it. In addition, Mr Coveney stated that a no-deal outcome will cause huge disruption and costs. The two remaining disagreements are the EU's insistence of a level playing field for doing business and fishing. For more information, please see RTE.

Carriers

DHL ANNOUNCES £17.5 MILLION INVESTMENT IN THE UK

DHL has announced that it is investing £17.5 million (€19.2m) to increase its network capacity in the UK. The move follows a 40 percent growth in volume this year. The investment includes five site moves in strategically prime locations. As a result, DHL will double its footprint and handling capabilities at each site. Last month, a new facility opened in Eastleigh, Hampshire, with an investment of over £7.5 million (€8.2 million). Operations from DHL’s Fareham site are being relocated to the new center. This facility is more than double the size of the current depot and can process 20,000 parcels a day. For more information, please see Parcel and Postal Technology.

DPD OPENS NEW MAASTRICHT FACILITY TO HELP WITH PEAK VOLUMES

Parcel delivery company DPD has opened a new distribution facility in Maastricht. This facility will assist with the increase in demand during peak season and the carrier’s parcel delivery capacity in the Netherlands. Furthermore, DPD has reduced its transport movements from the sorting centre in Eindhoven to Maastricht by 5,000 kilometres. This totals a reduction of over 400 tons of C02 emissions a year. The facility can sort more than 15,000 parcels per day. For more details, please see Post and Parcel.

Precision News

WIN PEAK SEASON WITH MULTI CARRIER PARCEL SHIPPING SOFTWARE

Welcome to the holiday season. For many of us around the world, December is a time for family, friends and good cheer. For shippers — especially retailers — and their carrier shipping partners, the last month of the year is a serious logistical challenge.

Single’s Day, Black Friday and Cyber Monday may have come and gone. But with in-store retail still curbed around large parts of the world, many retailers have extended online shopping offers and discounts.

To win at peak season, retailers need to offer fantastic customer service, ensure on-time delivery and contain shipping costs. In this Precision Report we look at how multi carrier parcel shipping software can help enterprises effectively and efficiently navigate peak season. To read the full report, please click here.

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