News • 27.07.2022

DHL invests €560M in UK e-commerce operation to support growth

More than 4,000 jobs will be created through the investment focused on sustainable growth

Animated image of a DHL storage facility
Source: DHL

DHL eCommerce Solutions has announced plans to invest €560m across its UK ecommerce operation, DHL Parcel UK. The investment comes following a 40% volume uplift since the start of 2020 and soaring demand for its ecommerce and B2B services. The expansion project is designed to deliver the right infrastructure to facilitate growth as well as putting the business at the forefront of sustainable and digital logistics.

“The Covid pandemic has not only driven digitalization, but also significantly changed consumer behavior, rapidly accelerating the growth of e-commerce and shifting shopping habits. At Deutsche Post DHL Group we believe this shift to online shopping will remain intact and, as e-commerce is one of the important pillars in our Group Strategy 2025, we’ll continue to invest in the sector. 

This investment in the UK is a key part of that, supporting the expansion and modernization of our European network. I’m really looking forward to supporting the business on its growth path in my new role as CEO DHL eCommerce Solutions starting August 1,” says Pablo Ciano, Executive Vice President Corporate Development at Deutsche Post DHL Group and designated CEO DHL eCommerce Solutions.

Nearly half of the investment will be in a brand new 25k m² hub in SEGRO Park Coventry Gateway, located south of Coventry Airport. The new facility will have the capacity to handle over 500k items per day and is expected to create over 600 new jobs including warehouse, driver, administration and management positions. 

New hub with state of the art features

The new hub will feature secure bonded storage and customs capabilities to support international ecommerce, a 48-door cross dock facility and state of the art mechanization, allowing automatic sortation of mixed sized and weight items through high-speed sortation equipment. The building has been designed to achieve BREEAM ‘Excellent’ status to minimize its environmental impact through design features such as 7,000m2 of solar panels, LED lighting and landscaping to protect the natural biodiversity of the area. As well as incorporating EV charging points for cars, the site will also be equipped with LGV electric charging points throughout and sustainable fuel capabilities to pre-empt technology developments in larger vehicles over the coming years.

An initial €75m will be invested in upgrading the company’s fleet with a major focus on alternative fuel vehicles. The fleet investment includes 6 fully electric 18tn trucks, 30 Liquefied Natural Gas (bio-LNG) trucks, and 18 electric tugs. This roll-out will be followed by further sustainable fleet investment going forward.

Animated image of a DHL storage facility
Source: DHL

The investment in sustainable infrastructure and vehicles supports Deutsche Post DHL Group’s sustainability strategy which is in line with the Paris Agreement through the Science-Based Targets initiative (SBTi). In total, Deutsche Post DHL Group will spend €7 billion in sustainable fuel and clean technologies by 2030.

New depots bring new jobs to the UK

Finally, the DHL eCommerce Solutions will also invest over €220m to create 10 brand new collection and delivery depots across the UK, and 20 more existing sites will be expanded. The new and expanded depots will create an additional 3,500 jobs across the country. The locations of the new sites have been strategically chosen to reduce the distance required to serve customers, enabling further roll-out of electric vans and improving speed of service.

Peter Fuller, CEO of DHL Parcel UK, says, “This investment is a demonstration of the excellent work our people and partners have delivered over the past two years to get us to the level of growth where expansion is required to meet customer demand. E-commerce is going to continue to shape the world around us, this investment, along with the strength of the DHL brand and our leading approach to digitalization and sustainability will put us in a strong position to take advantage of market growth.”

Source: DHL

related articles:

popular articles:

Thumbnail-Photo: Black Friday and Cyber Monday: challenges, stumbling blocks and solutions...
23.11.2022   #e-commerce #brick and mortar retail

Black Friday and Cyber Monday: challenges, stumbling blocks and solutions

What matters before, during and after big shopping events

Bargains, deals and savings as far as the eye can see: Black Friday and Cyber Monday are just around the corner, ushering in the most competitive time of the year. We spoke to Stefan Mennecke, Vice President of Sales - MEA, Central, Eastern ...

Thumbnail-Photo: Please board, doors close automatically
30.11.2022   #digitization #sustainability

"Please board, doors close automatically"

The "CargoSurfer" project aims to get parcels to their destination sustainably by public transport

Whether by bus, train, suburban railway or underground – public transport should be used more. But why only by us people? That's what the brains behind the CargoSurfer project were asking themselves. Prof. André Ludwig from ...

Thumbnail-Photo: DHL Supply Chain expands partnership with Locus Robotics...
26.10.2022   #logistics #automation

DHL Supply Chain expands partnership with Locus Robotics

Locus autonomous mobile robots double e-commerce productivity for global outdoor apparel retail brand Carhartt

Locus Robotics, a producer of mobile robots (AMRs) for fulfillment warehouses, announces the expansion of their partnership with DHL Supply Chain, the contract logistics leader within Deutsche Post DHL Group. The extended partnership includes the ...

Thumbnail-Photo: With mailing bags against cardboard shortage & packaging waste...
14.11.2022   #online trading #e-commerce

With mailing bags against cardboard shortage & packaging waste

Interview: Hamburg-based start-up Boomerang tries to solve two problems of online trade with one stone thanks to an innovative idea

Since the pandemic, online trade is booming like never before. But what sounds like a blessing can also become a burden. Packaging waste is increasing rapidly and polluting the environment. At the same time, the global crises are causing a shortage ...

Thumbnail-Photo: Wolt Drive: Finnish delivery service now makes its fleet available to...
21.11.2022   #online trading #brick and mortar retail

"Wolt Drive": Finnish delivery service now makes its fleet available to all traders

Interview: Wolt offers local traders new opportunities to keep up with online trade

Online retail has dominated the industry not only since the pandemic. Young people in particular, but increasingly older people as well, use the web to do their shopping. This primarily benefits the market-dominating internet giants. In order for ...

Thumbnail-Photo: Become the hero of your customers!
11.01.2023   #online trading #e-commerce

Become the hero of your customers!

Optimise your international shipping strategy – here's how

Omnichannel shopping is in high demand. Almost half of European online shoppers ordered internationally last year. For many e-commerce companies, the opportunities offered by selling their goods internationally are tempting. But in order to retain ...

Thumbnail-Photo: Joint forces to create the future of autonomous delivery...
12.12.2022   #Tech in Retail #app

Joint forces to create the future of autonomous delivery

Carrefour and Goggo Network French trialling autonomous delivery of Carrefour Drive orders

Carrefour and Goggo Network are trialling a Mobile Drive service that involves using a completely autonomous delivery vehicle. It will operate on public roads, both in heavy traffic and in normal conditions (covering 15 km at up to 70 km/h) – ...

Thumbnail-Photo: Weekly groceries almost delivering themselves to your doorstep...
09.01.2023   #online trading #e-commerce

Weekly groceries almost delivering themselves to your doorstep

LOXO presents Europe's first autonomous delivery vehicle for last mile delivery

Lack of staff and processes with optimization potential in retail? LOXO kills two birds with one stone and releases the brand new LOXO Alpha on the streets of Switzerland already at the beginning of this year: an innovative answer to the dynamically ...