Retailers have hit back at delivery firm DPD for cutting commission rates by 25%.

In a letter sent to stores on 24 March, and seen by bR.com, the firm confirmed it is cutting margins by 15p “to remain” competitive, “following a market review” after a “two-fold increase” in the number of parcels being collected and delivered to partnered stores. Previously, stores earned 60p per parcel, and will now be paid 45p, yet DPD reinforced its “rate continues to be one of the best in the world”.  

Graeme Pentland, owner of Ashburton Village Store in Newcastle-upon-Tyne responded: “The claim is absolute rubbish, as I haven’t seen any. I’m doing worse than before because they’ve increased the number of outlets that operate the service, so it’s harder to compete.”

Also in the letter, DPD told retailers to “prepare for the continued increase in footfall in their shops,” which “also results in increased spend”. It also stressed how it “fully expects to see continued increases in deliveries” to partnered stores in the months and years ahead.

The move comes a week after rival parcel firm Evri cut the commission it pays to stores by 37.5%.

DPD have been approached for comment.