DHL ends delivery and assembly service for Ikea and Karstadt

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14 Feb, 2011 Updated Mon 14 Feb 2011 10:29 CEST
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Deutsche Post subsidiary DHL said on Monday it will no longer deliver and assemble goods from Ikea and department store Karstadt. Customers who need help putting together their Billy bookshelves are now on their own.


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.




2011/02/14 10:29

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