Spring 2007

Parcelnet, the UK home shopping delivery operation in the Otto catalogue group, is acquiring the UK courier network of rival catalogue group Redcats, almost doubling its overall courier operation to over 7,000 couriers.

Under the terms of the deal Parcelnet will provide a home delivery service for Redcats' UK brands - notably La Redoute, Empire Stores, Vertbaudet and Daxon. Otto's UK catalogue brands are Grattan, Freemans and Kaleidoscope.

Parcelnet managing director Carole Woodhead says that integrating the two operations will result greater courier density, which will enable Parcelnet to introduce more delivery options for customers. It will service the needs of more than 40 home shopping clients.

Among Redcats' courier activities was a delivery service provided with Lynx, but we were unable to confirm how this has been affected by Lynx's sale to UPS, and now by the Redcats deal with Parcelnet.

This move continues an ongoing process of change in the courier delivery market. Not long ago catalogue group N Brown sold its courier network to TNT, which has made it the focus of its emerging postal delivery operation. But Home Delivery Network, the combined Littlewoods/GUS operation, retains its own courier network.