Royal Mail update: work stoppage, foreign investment

Because retailers don’t have it tough enough this season: The Communications Workers Union (CWU) has scheduled a 24-hour strike against Royal Mail for 19th December. For many retailers, that day is the deadline for guaranteed Christmas delivery. Although workers at just five North West sorting offices will be walking out, the strike is expected to have a knock-on effect on deliveries throughout the system. The union is protesting the closure and consolidation of several North West facilities.

Future work stoppages can’t be ruled out - especially as the CWU disapproves of Lord Mandelson’s proposals for reforming Royal Mail. On 16th December the business secretary told Parliament that, among other changes, the operations arm of Royal Mail needs to be partially privatised in order to remain viable and that Dutch delivery firm TNT was interested in acquiring a share. TNT has confirmed its interest, but it said that any acquisition is subject to implementation of the other proposed changes”. Among the proposals is a speedier implementation of more machinery to make post processing more efficient.

Royal Mail said that while it needs to review Mandelson’s proposed reforms more closely, so far it welcomes the suggestions and a possible partnership with TNT. But the CWU, which has resisted the introduction of some labour-saving technology on the grounds that it would lead to job losses, blasted the recommendations: “This was meant to be a report about competition,” CWU general secretary Billy Hayes said in a statement, “but Mandelson has ignored the damage done through irresponsible liberalisation and advocates more involvement by private companies.”

Redcats UK to make up to 130 redundant

Redcats UK may make up to 130 workers in Bradford and Wakefield redundant. But the parent company of the Daxons, La Redoute and Vertbaudet catalogues says it is making “significant investment” to retain 500 logistics and call centre positions in the UK, rather than moving them to France, where Redcats parent company PPR is based.

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Other Breaking Stories...

All Woolworths stores to close by 5th January

Having failed to find a buyer for the company as an ongoing concern, Woolworths will start closing down its stores after Boxing Day and will have shuttered all 870 stores by 5th January. The company employs 27,000 staff, 22,000 of them full-time workers; they will be made redundant in the new year.

New web stores for Matalan, Tesco

This week value-priced retailer Matalan finally made its website commerce-enabled. Digital agency Code Computerlove built www.MatalanOnline.co.uk, which can be accessed on its own as well as via a button on the nontransactional Matalan.co.uk site. And Tesco has partnered with Subside Sports to launch www.TescoFootballShirts.com, which sells team-branded apparel and accessories. The new site more closely resembles the Subside Sports website than that of Tesco Direct, which does not link to it.

Premier Farnell posts third-quarter growth

Third-quarter sales at electronic components distributor Premier Farnell rose 2 percent, to £209.1 million, and profit before tax increased 4 percent, to £17.7 million. Web sales increased 25 percent; they now account for 32 percent of turnover in the company’s core manufacturing and distribution division.

International a strong suit for Arcandor

For the fiscal year ended 30th September, the Primondo mail order division of Germany-based Arcandor posted sales of nearly 4.31 billion Euros, a 6.7-percent rise from the previous year. Earnings for the division soared from 4.7 million Euros to 89.7 million Euros. Sales from brands outside of Germany - such as its Afibel and Peter Hahn catalogues - rose 21 percent, with Russia well on the way to becoming the company’s second largest market, after Germany. Overall EBITDA for Arcandor, which also includes travel unit Thomas Cook and the Karstadt department stores, rose as well, from 600.9 million Euros to 753.8 million Euros. But total company revenue slid 1.1 percent, to 19.91 billion Euros. In October the company launched its Madeleine women’s fashion catalogue in the UK. For more on international direct marketing, subscribe to sister enewsletter Cross-Atlantic Insight.

New UK chief for Insight

The UK managing director of IT direct marketer Insight, Angelo Di Ventura, is leaving the company at the end of the year. He will be replaced by Emma Crookes, who is being promoted to vice president for Insight UK and Ireland.

Recycle Works founder wins Everywoman Award

Congratulations go out to Sylvia Hopwood: The founder of The Recycle Works, a web marketer of recycling products, won a NatWest Everywoman Iris Award, as “the woman whose business growth and success has been greatly improved through successful implementation and use of IT & communications”.

Mark your diary for the ECMOD Awards

The ECMOD Awards, in association with Royal Mail, takes place on Thursday 2nd April 2009 in the Nine Kings Suite of the Royal Lancaster Hotel in London.

Winning an ECMOD Award is one of the most meaningful accolades there is in the business. But there is only one way to be in with a chance of winning and that is to enter. For full information about entering your company, please download the Awards Entry Form from www.ecmod360.co.uk/awards

This prestigious event is also sponsored by Webmart UK, JPS Limited and GI Direct. For details of sponsorship opportunities please download the Awards Sponsorship Form from our website. Or if you would like to discuss entering or getting involved, please feel free to contact the ECMOD Awards team on 01271 866112.