In the QAD Precision News Round-Up: 4 December 2020, John Lewis
ceases cross-border sales; Arcadia Group goes into administration;
post-Brexit talks near the end; eurozone business activity
contracts; DHL invests £17.5 million in UK; plus winning at peak
season and more.
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
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
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.
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.
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.
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
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
QAD 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.