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The future of home delivery

11 January 2007

Despite the problems of home delivery, our experts are optimistic about the future. "I am really excited when we talk about 300% growth in six years and a £20bn turnover," said Martin Dorchester. "The better players are still in the market and I think that they will get better." Brian Austin commented: "I think technology will help improve the service. As service demands become greater it can only be better for people in the market. There are not many people left in it, so the choice for customers,  rather than consumers, is limited."

Stephen Allen said that internet use will increase with the growth of broadband. "If I look at volume I am tremendously optimistic. Then I look at regulations in terms of health and safety, the environment, the London freight plan and congestion charging - there is going to be a lot to do. At the moment we have growth but when that growth levels out in five to ten years, I can see it going the same way as every other part of the business, which is being commoditised."

Rebecca Jenkins said that the purchase by Wincanton of the Lane Group showed the potential in the market. At the time, she said, Wincanton's press statement suggested that the home delivery market was a growing one, estimated to be worth £37.1bn during 2005, driven by the growth in internet shopping and multi-channel retailing. However, this is a sector that is ripe for improvement as the demands on home delivery operations become increasingly complex and smaller companies  find it difficult to respond. Nigel Spooner said: "There is increasing volume in the market so we have to make huge efforts in the training of people and reduce the number of failures. If we do that, it will drive volumes."


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