Courier and Express Delivery - UK - May 2018

EXECUTIVE SUMMARY 
The market
Figure 1: UK courier and express delivery services market value and volume, 2013-17
Market segmentation
Figure 2: Courier and express delivery services market segmentation, internal and international, 2013-17
Figure 3: Courier and express delivery services market segmentation, internal and international, 2013-17
Market factors
Online retail continues to surge
Figure 4: All online retail sales and online sales as a % of all retail sales, 2012-17
Boom of online-only stores
Figure 5: Online-only and store based retailers, share of all online sales, 2009-18
Pricing increases freeze
Figure 6: Price index in the courier services sector, 2012-17
Growing internet access, usage and shopping
The consumer
Figure 7: Delivery method, % of respondents, February 2018
Laptops still dominate, but mobile phone orders continue to grow
Convenience continues to drive the use of delivery over in-store purchases
Figure 8: Factors behind delivery use, % of respondents, February 2018
The rise of returns has pressured operator margins in recent years
Future innovation interest is driven largely by demand for greater convenience and flexibility
Figure 9: Interest in future developments, % of respondents, February 2018
Market forecasts
Figure 10: Courier and express delivery services market forecast, 2018-22
Technological advancements in the delivery process
Major new entrants to the marketplace
What we think
INTRODUCTION 
Issues in the market
Definitions
Methodology
Abbreviations
Market positioning
The supplier
The customer
KEY INSIGHTS 
Legal action around employment rights
Action from DPD
Growing strain of returns
MARKET SIZE
Key points
Figure 11: UK market value for courier and express delivery services, 2013-17
Figure 12: UK market volume for courier and express delivery services, 2013-17
MARKET SEGMENTATION 
Key points
Internal delivery continues to consolidate total market
Figure 13: Courier and express delivery services market segmentation, internal and international, 2013-17
Figure 14: Courier and express delivery services market segmentation, internal and international, 2013-17
MARKET FACTORS
Key points
Online retail continues to surge
Figure 15: All online retail sales and online sales as a % of all retail sales, 2012-17
Boom of online-only stores and the countered call for high street retailer delivery subscriptions
Figure 16: Online-only and store based retailers, share of all online sales, 2009-18
Rise of subscription schemes
Price growth slowed in 2017 amid growing competition
Figure 17: Price index in the courier services sector, 2012-17
Growing internet access and mobile usage
Online shopping on the rise
INDUSTRY STRUCTURE 
Key points
Industry development
2016 saw a series of acquisitions
Changes to the industry
Figure 18: Analysis of changes in courier activities, by number of businesses and outlets, % change, 2013-17
Industry by turnover
Figure 19: Analysis of the financial structure of courier activities, % of total, 2016 and 2017
Industry by employment
Figure 20: Analysis of the employment structure of courier activities, % of total, 2016 and 2017
COMPANY PROFILES
CITY SPRINT UK 
Recent company activity
Financials
Figure 21: Financial analysis of City Sprint UK, 2012-16
Company strategy
DPD GROUP UK
Recent company activity
Financials
Figure 22: Financial analysis of DPD Group UK, £ million, 2012-13 & 2015-17
Company strategy
DX GROUP
Recent company activity
Financials
Figure 23: Financial analysis of DX Group, £ million, 2013-17
Company strategy
FEDEX UK
Recent company activity
Financials
Figure 24: Financial analysis of FedEx UK, £ million, 2013-17
Company strategy
HERMES
Recent company activity
Financials
Figure 25: Financial analysis of Hermes, £ million, 2013-17
Company strategy
PARCELFORCE WORLDWIDE
Recent company activity
Financials
Figure 26: Analysis of Parcelforce Worldwide, value and volume, 2015 and 2016
Company strategy
TNT UK
Recent company activity
Financials
Figure 27: Financial analysis of TNT UK, £ million, 2012-15 and 2017
Company strategy
UK MAIL 
Recent company activity
Financials
Figure 28: Financial analysis of UK Mail Group, £ million, 2012-16
Company strategy
UPS 
Recent company activity
Financials
Figure 29: Financial analysis of UPS UK, £ million, 2012-16
Company strategy
YODEL 
Recent company activity
Financials
Figure 30: Financial analysis of Yodel, £ million, 2012-16
Company strategy
THE CONSUMER 
Key points
Experience of industry
Figure 31: Delivery experience, February 2018
METHOD OF DELIVERY 
Figure 32: Delivery method, % of respondents, February 2018
METHOD OF ORDER
Figure 33: Order method, February 2018
Devices used
Figure 34: Use of device, % of respondents, February 2018
Younger consumers driving smartphone usage
REASON FOR DELIVERY 
Figure 35: Factors behind delivery use, February 2018
INCREASING STRAIN OF RETURNS 
Figure 36: Use of returns, February 2018
Figure 37: Method of return, February 2018
FUTURE ENHANCEMENTS 
Figure 38: Interest in future developments, February 2018
Same-day and evening deliveries
GPS and geo-location
Consumers want control
MARKET FORECAST
Key points
The market
Figure 39: Courier and express delivery services market forecast, 2018-22
Market factors
Continued growth in online retail
Figure 40: Forecast online retail market, 2018-22
New means of delivery via technological progress
New entrants to the market
FURTHER SOURCES AND CONTACTS 
Trade associations
Association of International Courier & Express Services
Institute of Couriers
The National Courier and Despatch Association
Trade nagazines
Courier News
Post and Parcel
Trade exhibitions
eDelivery Expo