About this report
This report gives a detailed view of the historical and forecast development of parcel shop and locker networks.
It includes sections looking at strategies of the main network operators, profiling locker manufacturers and on seven of the leading markets (France, Germany, Benelux, Italy, Poland, Spain and the UK).
It quantifies the market size and sets out credible forecast scenarios supported by clearly stated assumptions.
We also carry out an in-depth analysis of the relevant drivers of growth – in particular home shopping – setting out historical changes and available forecasts.
This report is available for immediate download.
The price includes a follow-up conference call with the Apex Insight team to discuss findings and go through any questions you may have on areas such as report methodology, definitions, inputs to our forecast model and alternative scenarios.
Why is it important?
Parcel shops and locker networks are quickly being rolled out across Europe.
They are rapidly becoming an essential component of the logistics operations involved in getting internet purchases into the hands of consumers, while also remaining a key element of spare parts logistics operations.
Those building networks frequently advocate them as the best solutions for long-standing problems such as the last mile and returns.
Across the whole logistics industry they are one of the fastest-growing areas and appear likely to remain so in the future.
This report aims to explore what is happening in the market now, what factors are driving it and provide a view on how it is likely to develop in the future.
What is the methodology?
This report is based on
– Interviews with senior-level contacts in the parcels and home shopping industries
– Extensive research into published industry sources
– In-depth analysis of the macroeconomic environment and relevant market drivers
– Financial analysis of the accounts of companies in the industry.
Information from these sources has been synthesised and presented clearly and concisely with extensive use of charts and tables to illuminate points and support conclusions.
Market forecasts have been constructed using simple assumptions which are clearly stated. Supporting evidence is provided for our assumptions but readers can easily flex them to model alternative scenarios.
Who is it useful for?
The report is intended for:
– Operators of parcel shop and locker network businesses
– Parcels carriers
– Home shopping / internet retailers
– Operators of field service engineer forces
– Convenience store chains
– Investors in these businesses
– Market regulators and policymakers
– Banks, analysts, consultants and other parties with interests in the sector
This report focuses on networks of locations to facilitate last mile delivery of parcels to consumers and business consignees.
Networks are now being rolled-out rapidly in most, if not all, European countries. A large proportion of the European population now has several outlets within a short travel time of home or workplace.
Locations may be:
– Parcel shops, which are staffed locations, most commonly found convenience stores with long opening hours
– Secure locker banks, generally found in locations which have both long access hours and a reasonable level of security, such as railway stations, supermarket car parks and petrol station forecourts.
The networks have the potential to offer benefits to a range of different parties including consumers, parcel carriers, internet retailers, field service companies and site hosts by providing a combination of increased convenience and lower costs. In particular they:
– Improve the economics of typical parcels operations by improving consolidation.
– Increase the success rate of consumer deliveries and hence satisfaction levels.
– Eliminate time lost by field engineers travelling to the depot for spare parts.
– Drive additional revenue and footfall to host sites.
Locations and market drivers
By far the largest number of locations is currently in Germany.
– Of the other countries, France and the UK both have extensive networks with Belgium and the Netherlands – given their smaller size, also being well-served.
– Southern and Eastern European countries have far fewer sites
The most important driver of demand for locations is the level of business-to-consumer parcels generated by home shopping. Home shopping has grown in all countries covered by this report in recent years having more than doubled overall in the last five years.
During this period, the number of post offices has fallen. In some countries there are now more parcel shops than post offices.
Many of the leading European parcel carriers, in particular those with a focus on consumer deliveries, are now involved in building up their own networks
There are also several independent players, of which the largest are ByBox and InPost.
We expect growth in demand for parcel shops and lockers to continue to be driven primarily by the growth in internet retail. In particular, the growth of ‘Click-and-Collect’ type models which allow consumers to select a parcel shop or locker as an alternative to delivery to the home, could well lead to growth being faster than that of overall internet retail sales.
Supply factors are also important with networks currently being rolled out at pace to provide further capacity.
Key challenges in achieving further growth include:
– Acceptance of the concept by the mass of consumers, not just current early-adopters
– Availability of sufficient sites for more lockers and, in particular, parcel shops.
See this post for more on parcel shops and locker networks
See here for our interview research with operators of parcel shops