Fed Ex hits jackpot with Littlewoods
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I Federal Express this week [aimed to have become the fIc's biggest private parcels anier by buying Littlewoods' ,100-vehicle home delivery usiness.
The business will be relaunhed as Federal Express Parel Services. It handles 60 mit on home delivery ackages a year, but Federal ;xpress's UK vice-president :olin Millbanks says it will now e opened to other retailers. The move means Federal ,xpress will handle 90 million arcels a year, making it econd only to the Post Office the market, he says. Federal Express will take ver Littlewoods Home Delivry Service's 31 depots and ,100 vehicles, and all 2,800 mployees will be retained. ittlewoods-liveried vehicles will be re-liveried in Federal Express colours within four months.
Before the new deal Federal Express had 1,000 vehicles and 3,000 employees in the UK. It is part of the giant Fedex Corporation of America and until now has run domestic and international priority freight services and a contract distribution arm, Systemline, for customers including Boots, Volvo and Saab. Systemline carries 12.5 million items a year. The UK division also has responsibility for an Irish transport service and bought the London-based motorcycle courier service Corcorde Dispatch earlier this year.
Mil!banks stresses that as well as taking on Littlewoods' existing busines, PEPS will push hard for new contracts, even with Littlewoods' competitors: "Littlewoods will only be one of our customers," he says.
Littlewoods is negotiating details of the sale with its staff union, USDAW, but Millbanks says the transfer has been "all but resolved". A formal announcement on the deal will be made early next year.