Global Parcel Shops and Locker Networks: Market Insight Report 2018, including Parcel Shops and Locker Networks Database
This report includes:
– The main report, which covers parcel shops and locker networks worldwide, giving a detailed view of networks currently in operation, the historical growth of outlet numbers and sets out probable scenarios for future growth.
– In-depth profiles of nine leading networks (HiveBox, Hermes / Otto, Deutsche Post DHL (including DHL Packstation), DPD Pickup, UPS Access Point and Access Point Locker, InPost, GLS, Collect+ and Amazon PickUp / Amazon Locker). Profiles include available data on volumes and revenues supported by estimates based on our work in the market
– The seven most important country markets (China, Germany, UK, France, US, Spain, and Australia) are described in depth with details of all networks operating in them. There are shorter profiles on 19 other markets.
– Our forecast scenario for growth in the number of outlets and the revenue that they generate, which is supported by analysis of the key drivers of growth – in particular online retail spend and its share of total retail spend – setting out historical changes and available forecasts, by country.
– An excel spreadsheet containing our full database of 263 networks and 929,045 locations
– An appendix describing other last mile delivery methods such as in-boot delivery, courier networks and drone delivery.
– A conference call with our analysts to address your questions arising from the report.
The final mile component of internet retail, from the depot to the consumer, is the most labour-intensive, and therefore expensive, part of the overall cost of delivering a parcel. In our work in the market over several years we have found that, for leading UK carriers, it represents an average of around 45% of their total costs. Figures are likely to be similar in other markets.
This report focuses on retail collection points, i.e. parcel shops and parcel locker networks, which are now proven and fast-growing last mile delivery methods. The report is based on our database of parcel shop and locker locations which has been enlarged significantly since the previous version in 2017 to include an additional 29 networks. It now contains information on 263 separate networks with almost 1m locations.
This report focuses on the range of methods being used and / or considered to improve last mile delivery.
In particular we look at networks of locations to facilitate last mile delivery of parcels to consumers and business consignees. The sites may be:
– Parcel shops, which are staffed outlets, most commonly convenience stores or other shops with long opening hours, including florists, petrol stations and other outlets.
– Secure locker banks, generally found in places which are accessible from early until late and are able to provide an adequate level of security, such as railway stations, supermarket car parks and petrol station forecourts.
These networks are now being rolled-out in most countries worldwide. As a result, a very large number of people are now within a short travel time of one or more such locations.
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 increasing consolidation.
– Improve the success rate of consumer deliveries and hence satisfaction levels.
– Reduce time lost by field engineers travelling to the depot for spare parts.
– Provide additional footfall and hence revenue for the host locations
The other main last mile innovations discussed in the report are:
– Improvement in carrier systems and development of consumer apps
– Home lockers
– Drone delivery
– Robots and driverless vehicles
– In-boot delivery
– Courier delivery models
Market size and growth
We have identified almost one million parcel shop and locker locations worldwide. This includes over 700,000 parcel shops and more than 200,000 locker locations.
– China is by far the largest market with over half the global total of both parcel shop and locker locations. It is also a leader in development and deployment of the latest locker and consumer app technology.
Since 2017 the total global number of locations has increased by 40% as existing networks have rolled out further locations and new networks have been set up. Growth has, to a small extent, been offset by the failure and closure, or contraction, of some networks which have struggled to get their business model right and been lossmaking.
Revenue per location varies significantly between countries and according to the size, utilisation and business model of networks.
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.
– Internet retail sales continue to grow rapidly, from US$1,492bn in 2015 to US$2,290bn in 2017.
– Internet retail sales in Asia Pacific nearly doubled to reach US$1,365bn in 2017, more than both Europe and North America combined.
A series of organisations, including established parcel carriers and independents, is rolling out networks within countries and internationally. Leading networks include the following:
– Deutsche Post DHL’s Packstation locker network in Germany is the oldest and most successful parcel locker network in the world. It is also the largest locker network in Europe, with 3,400 locations.
– The largest locker network in China is Hivebox. It has secured funding to significantly expand its network locations as well as acquiring the CIMC locker network. Its network now extends to nearly 80,000 lockers.
– Amazon is rapidly expanding its pick up location networks, as well as its parcel locker networks in the US and Europe. Its locker network locations in the US and the UK have more than doubled in a year.
– UPS has expanded its Access Point network with 8,000 locations in the US and over 25,000 globally. It is currently investing in a parcel locker network in the US.
– InPost which, in contrast to others, has reduced its overall networks size having withdrawn from countries, including Canada, France, Malaysia, Russia, Spain and Ukraine.
– Other major operators of last mile networks include Best, FedEx, Sposter/China Post, Hermes, DPD (La Poste) and GLS (Royal Mail)
Business models differ between operators
– Most (but not all) carrier-owned networks handle only their own volumes
– Most independent networks are open to a range of carriers. In some cases they act as first tier supplier, working directly with retailers, while in other cases they act as a subcontractor to their carrier partners
There are four key success factors that an independent network needs to achieve in order for its locations to be consistently selected by consumers:
– Open / agnostic network: a consumer’s preferred, local site should be open to them for use with any retailer or carrier
– Many locations: to ensure there is one close enough to every consumer
– Long hours: open when the consumer wants access
– Awareness: requiring significant consumer marketing effort.
Demand for online shopping and convenient and cheap delivery options continues to grow. In this environment, we expect growth in demand for parcel shops and lockers to continue. 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 experience faster growth than that of overall internet retail sales. Many parcel shop and network operators, such as Hivebox, UPS, Amazon, and DHL, have plans in place to grow location numbers.
Penetration levels vary dramatically between countries. For example:
– Poland currently has one location for every $220k of internet retail spend and other European countries, such as Denmark and Germany, also have high densities.
– The equivalent figure for the US is one location for every $24m of spend, indicating the potential for further growth.
Key challenges in achieving further growth include:
– Acceptance of by consumers beyond early-adopters which may require improved user experience, better consumer apps and improved processes
– Availability of sufficient sites
– Availability of necessary capacity at the sites to cope with anticipated levels of demand.
What does the database contain?
– Network Name
– Operation type (locker, parcel shop)
– Solution partner (e.g. locker manufacturer)
– Number of locations
– Transport partners
– Location partners (e.g. where shops or lockers are based)
– Customers (e.g. retailers)
– Business model (open vs closed)
– Notes (other information)