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DHL ends delivery and assembly service for Ikea and Karstadt

The Local · 14 Feb 2011, 10:29

Published: 14 Feb 2011 10:29 GMT+01:00

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The Financial Times Deutschland reported the logistics giant does not feel that the home delivery service is profitable.

"It's just not worth it," a Deutsche Post official told the paper.

The end of the home delivery portion of Deutsche Post’s relationship with troubled chain Karstadt marks the further deterioration of a once-lucrative business with Arcandor, Karstadt’s parent company, which has filed for insolvency. Arcandor’s financial troubles have led to at least €250 million in losses for Deutsche Post.

DHL’s logistics contract with Karstadt – which also includes shipping services to its stores - once earned Bonn-based Post around €500 million annually. After the discontinuation of the home delivery service, that number will drop to around €150 million, according to Post sources.

The termination of the delivery contract with Swedish home furnishings chain Ikea – in Austria as well as Germany – will affect a business thought to be worth €15 million a year. As with Karstadt, DHL will continue to provide some logistics services to Ikea, such as long-distance freight transport.

Story continues below…


The Local (news@thelocal.de)

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Your comments about this article

14:27 February 14, 2011 by jamano
I don't get it. Delivering is their business why they say it's not worth it?
15:52 February 14, 2011 by freechoice
you wouldn't say the same, when you see a DHL black dude carrying a 25kg IKEA item from the foot of the stairs to your home at the side of a hill top.
19:37 February 14, 2011 by bartschaff
I also don't get it. Could they be refering to the assembling part?
20:04 February 14, 2011 by Gretl
Come on, people! It really isn't that hard. And if you can afford to pay someone to ship and assemble IKEA furniture, maybe you should be buying better stuff.

Half my house is from IKEA, purchased with the knowledge that it was not "permanent" stuff, but things I wouldn't worry about if my kids colored on it. That said, most of it has held up remarkable well, even with the PCSing.
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