Post Office links up with DPD for ‘click and collect’ parcel delivery to outlets

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The Post Office is opening up its network to an external carrier for the first time in its history after agreeing a link-up with delivery company DPD.

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The new “click and collect” service will initially be available at around 250 post offices this month before rolling out to some 1,500 outlets ahead of the peak Christmas period.

Customers making a purchase online will have the option to choose their local post office as the collection point.

DPD will deliver parcels directly to the post office and the postmaster will process customer collections at the counter.

The Post Office claims the deal is further demonstration of its strategy “to ensure the future sustainability of the network, provide an innovative offering to consumers in the fast-growing parcel market and drive footfall for postmasters and to the high street more broadly”.

It is the first time the Post Office, which was part of Royal Mail until its stock market float in 2013, has had a formal agreement with an independent delivery firm.

The deal does not affect the continuing relationship with Royal Mail but the privatised postal group will now face competition from DPD for contracts to deliver goods ordered online.

The Post Office, the UK’s largest retail network with 11,500 branches, previously only had an agreement with Royal Mail Group for parcel collections directly at its branches.

Nick Read, chief executive at the Post Office, said: “Combining the biggest physical retail network with one of the Europe’s best known logistical carriers provides greater customer convenience, footfall for postmasters and helps people back to the high street as Covid restrictions ease.

“I’m delighted that through our partnership with DPD, customers can select their local post office to collect parcels and know that they are often open longer hours, staffed by a knowledgeable postmaster and located moments from where they live.”

Elaine Kerr, chief executive of DPD, said: “This is a significant, long-term partnership between two brand leaders in the parcel industry and comes at a time when the convenience of online shopping and delivery is more valued than ever.

“Our aim is always to get parcels delivered safely, on time and provide recipients with as much choice as possible.

“This partnership enables us to offer more options at the point of purchase.”