Hermes Acquires 49% Share Held by DPD in Hermes-DPD Russia

Hermes has announced that it has acquired the 49% share held by DPD in Hermes-DPD Russia, strengthening its parcels business in Russia. Hermes is now the sole shareholder and the business will trade as Hermes Russia. Under the terms of the agreement, DPD will continue to handle logistics transport services in Russia.

The acquisition speeds up the integration of operations with Hermes’ Continental Parcel Network, specialising in deliveries to consumers. Russia is set to experience rapid growth in online shopping and home deliveries. In 2014, more than 75 million Russians shopped online, spending over $18.5 billion, which represents growth of 15% compared to the previous year.

Currently, Hermes operates more than 400 parcel shops in Russia, with 125 located in Russia’s major cities. Some 100 of these are located in the capital, Moscow. Hermes also operates east of the Urals, in the Asian part of Russia, with parcel shops in major cities such as Yekaterinburg, Novosibirsk, Krasnoyarsk, Omsk and Vladivostok. In the coming months, the number of pick-up/drop-off points is set to increase.

Marc Dessing, Chief Operating Officer of Hermes Europe, explained, “As the largest country in the world and as one of the fastest growing e-commerce markets, Russia occupies a central position in global trade. In view of our European expansion, we will be able to further develop the Russian parcel market with immediate effect on our own. For Hermes, Russia links Europe and Asia and enables us to better serve the spectrum of business interests there. So, our commitment here is a long-term one, as we strongly believe in positive Russian market development.”

Beyond the acquisition and expansion, Hermes is increasing collaboration with domestic retailers. It also is holding talks with potential e-commerce, fashion and consumer electronics partners interested in the returns service Hermes introduced in 2014. In addition, Hermes is working with a variety of distance sellers looking to take advantage of its cross-border parcel network to Western Europe and its 36,000 parcel shops.

For more information about parcel shops and locker networks, see Apex Insight’s latest report: European Parcel Shop and Locker Networks Market Insight Report 2015