Redcats UK, a key player in the UK home shopping sector, plans to sell its well established courier network business to Parcelnet as part of an exciting deal that will enhance the delivery options available to its own customers.
Parcelnet, the UK courier delivery network and provider of home shopping fulfillment services, is acquiring the Redcats UK courier network operation to further develop its existing delivery business. The combined courier network, which will consist of over 7,000 couriers, will significantly enhance the range of services available to Redcats UK – Parcelnet will provide a home delivery service for Redcats UK brands La Redoute, Empire Stores, Vertbaudet and Daxon. It will also enable Parcelnet to provide more delivery options for its customers.
“This acquisition will enable Redcats UK to focus on its home shopping activities. For Redcats UK brands it will improve speed of delivery, courier service and coverage, and give customers access to premium services. For employees there will be opportunities within a combined operation, and for couriers there are likely to be more dense delivery areas and a larger support network” said Carole Woodhead, Parcelnet MD.
She continued “Parcelnet is very pleased with this acquisition as it will bring many positives, having increased the network and service capability over recent years, this acquisition is an important component of our service development plan and we can react positively to the changing needs of customers in the growing home shopping market.”
Integrating the two operations will give access to greater courier density, which will enable Parcelnet to introduce more delivery options for customers. It will service the needs of more than 40 home shopping clients, including many of the UK's leading retailers whose remote retail success is underpinned by Parcelnet's delivery services.
“The acquisition of Redcats UK's courier network business by Parcelnet is a positive move for both parties: Parcelnet acquires an established courier network supported by expert staff and Redcats UK benefits from the extended service range and support levels provided by Parcelnet's courier delivery network,” said David Meredith, Redcats UK's Logistics Director.
He added: “It's a win, win for all sides and allows Redcats UK brands to deliver improved customer service levels and meet the demands of today's home shoppers through increased opportunities and flexibility.
“This move brings many positive changes for all parties involved and Redcats UK is looking forward to a long and happy relationship with Parcelnet that will give improved service levels to all of our customers.”
Parcelnet provides distribution and fulfilment services to remote retailers specifically, catalogue, internet and digital television retailers. The company has its headquarters in Bradford and operates out of 16 regional depots. It is a wholly-owned subsidiary of Otto UK.
About Otto UK
Otto UK was formed in 2001 when two members of the Otto Group – Grattan (acquired in 1991) and Freemans (acquired in 1999) – were brought together. Otto UK employs 6,000 people in the UK. It has four main sites in Bradford, Sheffield, Peterborough and London and 20 catalogue discount stores. Otto UK's brand names in the mail order market are Freemans, Grattan and Kaleidoscope. Parcelnet is the distribution arm of Otto UK, delivering parcels for in-house brands and providing delivery services for many third party retail clients. Otto UK is a member of the Otto Group.
Founded in 1949, the Otto Group is now a worldwide-operating trade and services group with more than 55,000 employees. The Group has 123 companies of primary significance and operates in 19 countries in Europe, North America and Asia. It is organised into four business segments: Multichannel Retail, Financial Services, Services and Wholesale. According to preliminary figures, Otto Group revenue in the fiscal year 2006/07 (to 28 February 2007) was 15,232 million euros.
Global corporate activities and a variety of strategic partnerships and joint ventures provide Otto with excellent opportunities to transfer know-how and to use the synergy potential available. The fact that national companies are acting within their own responsibility to a high degree guarantees both flexibility and a close customer relationship as well as optimum target group appeal in the respective country.
For further information on the Otto Group, please visit www.ottogroup.com