DHL 1997 Annual Report Download - page 46

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operation. During 1997, more than 5,200 agencies offered postal services,
particularly in those areas where we had closed small postal branches that
were no longer economical.
In light of the high level of customer satisfaction and cost advantages
that this sales concept offers, we will establish postal agencies in loca-
tions with stronger demand as well. Our plan is also to integrate entire
postal branches into major department stores. Three Deutsche Post-oper-
ated “Shop-in-Shop” branches opened their doors in late 1997, more are
in the planning.
Encouraged by the positive response to these Deutsche Post-operated
Shop-in-Shop branches in large department stores, we decided to move
ahead with another variation: postal branches which are operated by a
third party in collaboration with a retail partner. By the fall of 1997, we
had collaborated with McPaper AG to set up 13 Shop-in-Shop branches.
This trial was such a success that Deutsche Post acquired the McPaper
stationery products chain from Herlitz AG retroactive to January 1, 1998.
We plan to open some 550 Deutsche Post/McPaper branches throughout
the country in the next five years so that our customers can benefit
from convenient one-stop shopping facilities at attractive locations.
Top technology, functional design
We continued modernizing our branch network in 1997, investing
some DM 100 million over the course of the year. Nearly 100 branches
were renovated according to our “open service” design; another 500 to
600 branches will follow.
With more than 22,000 EPOS (electronic point of sale) systems in
place, Deutsche Post has terminals in nearly all its sales outlets,
both in those it operates itself and in those operated by other companies.
Today, 98.5 percent of all transactions are conducted via these IT-based
systems.
43
Postal agencies
1996 1997 0
1,000
2,000
3,000
4,000
5,000
4,604
5,236
number
Shop-in-Shop branches
1996 1997 0
5
10
15
20
0
15
number
Postal branches
1996 1997 8,000
9,000
10,000
11,000
12,000
12,000
10,800
number