1. July 2020 | Press release
DPD will more than double its network of automated Pickup stations in the Baltic countries, with the fastest growth foreseen in Lithuania
1 July 2020 – In light of the extremely fast growth of e-commerce and the impact of the lockdown on people’s habits, DPD’s companies in Lithuania, Latvia and Estonia plan rapid expansion of their automated parcel lockers. The plan is in 2020-2021 to enlarge the existing network of Pickup points 2.45 times – to 641 parcel stations. Allocation of €7.3 million to this expansion will make it DPD’s biggest investment in infrastructure in the company’s entire 21-year history. The second biggest was the investment of €6.5 million in an international parcel sorting terminal in Kaunas.
“As the number of people buying at e-shops rises, their need to pick-up parcels at parcel lockers is also growing. DPDgroup e-shopper barometer 2019 – a survey of EU e-shoppers conducted on behalf of DPDgroup last year – revealed 55% of the Lithuanians choose delivery to automated parcel lockers, whereas the European average is 13%. This trend show us the direction we should go in expanding our services – and that is precisely why we decided in favour of a record expansion of the Pickup stations network in the Baltic countries,” states Robertas Vilkaitis, CEO of DPD in the Baltics.
Biggest expansion planned in Lithuania
In Lithuania, the Pickup stations network will be increased the most, nearly tripling to reach 235 in mid-2021. Already this year, there are plans to double the existing network of parcel Pickup points in the country, to 165. This time attention will be given not just to big cities, but to outlying regions too, including unique places where there is no parcel station or, to the company’s knowledge, a lack of them is felt.
It is planned that most of the new parcel lockers will be installed near shopping centres and other places where people regularly gather, though the company is open to locations besides just in shopping centres as well.
“Parcel delivery by courier remains popular, presently accounting for over 70% of all parcel deliveries, with more than 500 couriers occupied in that every day. Still, for several years now we’ve been seeing stable growth of e-commerce and both business and private customers ever more often using the parcel pick-up service, which is not just cheaper and more convenient, but also ecological,” Mr Vilkaitis notes.
The Pickup station phenomenon in the Baltics
According to Mr Vilkaitis, if you compare the scale of e-commerce in Lithuania and Europe, for trade in the digital realm the country is at the statistical average, but for service infrastructure – the reach of pick-up lockers in the market – it is unique.
“Here we may be standing out for our Northern manner as well as our small business community with its traditions, so we have less desire to interact with others than, for instance, in countries further South, since it seems like all well-functioning solutions where people aren’t needed catch on in Lithuania – parcel lockers, bottle-return vending machines, self-service check-outs and so on,” CEO of DPD Baltics says.
DPDgroup e-shopper barometer 2019 – the survey of EU e-shoppers that DPDgroup commissioned – also showed that people most highly value convenience – having goods you order online delivered to your home at a chosen time and tracking the parcel’s route in real time, or picking it up from a parcel station on the way to or from work.
“We plan to remain the parcel-delivery leaders in Lithuania, but the unusual lockdown situation, uncertainty about the future and sudden change in consumers’ habits sharply corrected the steady expansion that was previously planned. Before lockdown, the B2C and B2B client segments had a ratio of 30/70, but during lockdown that relationship reversed, becoming 60/40. With the end of lockdown, the ratio has weakened a bit, but we have no doubt the recent changes due to Covid-19 will remain for the long term,” Robertas Vilkaitis says, sharing his insights.
Data are from the DPDgroup “E-shopper barometer Global report”. The study was conducted on behalf of DPDgroup by GfK. In May-July 2019, 24,225 people in 21 European countries were surveyed, including 800 people in Lithuania.
About DPD Lithuania
DPD Lithuania UAB is part of the international parcel delivery group DPDgroup. The company is the parcel-delivery/courier-business leader in Lithuania. DPD Lithuania’s services include delivery in all of Europe and the continually growing Pickup network of self-service terminals. More than 600 people now work in the DPD Lithuania network.