Chicago and Hamburg - May 3, 2017 - Hermes, a leading provider of end-to-end e-commerce and omnichannel services for fashion and lifestyle brands, reports that parent company Hermes Group closed the 2016 financial year (FY) on a positive note, growing revenue by over 7 percent to $2.88 billion (adjusted for currency translation effects). In addition, the Group gained market share and bolstered its core businesses in Europe.
The Group's European parcel companies transported about 640 million packages to private customers, a rise of 10 percent year over year. About 75 percent of this traffic is attributable to clients outside of the Otto Group. Hermes Group's two-man handling unit, which delivers furniture, furnishings and appliances, also grew by more than 6 percent. The integration of French parcel shipper Mondial Relay and the acquisition of Girard Agediss enabled Hermes to improve its competitive position in this sector. Mondial Relay processed 57 million consignments in 2016, while the two-man units in Germany transported over 5 million items.
Looking toward the future, the Hermes Group is:
• Continuing its infrastructure developments across the 2C parcel market (B2C and C2C). Three new Hermes Logistics Centers will open in Bad Rappenau, Mainz and Berlin in 2017 as part of a $327 million investment program. By the end of 2019, nine state-of-the-art logistics centers will exist, all designed in conformance with strict environmental guidelines.
• Modernizing and electrifying its fleet of vehicles. The Group has entered into a strategic partnership with Mercedes-Benz and will deploy delivery vans compliant with EURO-6 in its own fleets and those of its contracting partners. Starting in 2018, Hermes Group will test the deployment of electric vehicles, initially in Stuttgart and Hamburg. By 2020, the Group plans to deploy 1,500 Mercedes-Benz Vito and Sprinter vehicles in conurbation areas throughout Germany.
• Testing Starship delivery robots in Hamburg and London and promoting other innovative delivery concepts.
Donald Pilz, CEO of Hermes Europe GmbH, says, "We are delighted to close 2016 on such a positive note. We were able to consolidate our strong position in a highly dynamic and, in many respects, challenging market. Now, with an eye toward even further growth in 2017, we will continue the ongoing modernization and expansion of our logistics infrastructure and our investments in new technologies. On top of this, we hope to expand into new customer-centric services."
Pilz continues, "Given our current investments, shareholdings and sponsored projects, we are in a great position to address the future interests of customers and advance our sustainability efforts. The individualization of delivery processes and the rising costs of vehicles, couriers and technical infrastructure signify greater ecological and economic challenges for the entire parcel distribution industry. There needs to be greater awareness among politicians, business people and consumers to not only shape ongoing growth in retailing, but also discern customer needs."
Hermes provides international logistics services to the retail industry. Headquartered in Hamburg, it is a wholly-owned subsidiary of the Otto Group. The company is a leading specialist in retail-related services and partners with numerous distance sellers in Germany and internationally. The range of services provided by the twelve Hermes companies embraces the full length of the supply chain: sourcing, quality assurance, transport, fulfilment, home deliveries and two-man handling. In 2016, the Hermes Group grew consolidated revenue to $2.88 billion. Hermes operates worldwide and has established country companies in the UK, Russia, Italy and Austria. Across these operations, Hermes employs 12,618 individuals. For further information, please go to www.newsroom.hermesworld.com.
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