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Press Release

German e-retail to benefit from even faster deliveries

The country's leading logistics companies invest EUR 1 billion in cutting delivery times

Berlin, Chicago (gtai) - E-commerce is booming in Germany: online sales hit almost EUR 40 billion (USD 55 billion) in 2013 and are set to top EUR 100 billion (USD 137 billion) in 2020 - a 300 percent increase on 2012. Germany has the largest e-commerce market in Europe with 25 percent of European e-commerce turnover.

Germany’s excellent logistics contribute to this success. Nevertheless, consumer expectations are rising, with same-day delivery potentially becoming the norm.

“Premium two-hour delivery options are no longer so farfetched,” claims Nadine Späth, who will be representing Germany Trade & Invest (GTAI) at IRCE Chicago from June 10-13, 2014.

Germany’s largest logistics companies are rising to this challenge with impressive levels of investment. Last week, Hermes, Germany’s second-largest package delivery company, announced investments of EUR 300 million (USD 408 million) by 2018 to modernize its German packages division, including plans for 35 new logistics centers and an increased focus on SMEs. Meanwhile, Deutsche Post DHL, Germany’s largest package delivery firm, has invested EUR 700 million (USD 952 million) in recent years in its systems and upgrading its sorting machines.

“Germany ranks number one in the World Bank’s 2014 Logistics Performance Index”, says Späth, GTAI’s e-commerce market expert. “These new investments will help ensure that this remains so in the future.”

Germany’s geographical location, excellent infrastructure, high productivity rates, internationally competitive tax conditions, steady wage levels and highly educated workforce make the country an obvious choice for online retailers looking to establish a presence in Europe.

“The mailman will be calling sooner than you might expect - and that is great news for online retailers,” concludes Späth.

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