InPost has fully acquired Menzies Distribution, with the parcel locker company announcing on 14 October that it has bought the 70% of Menzies that it did not already own for £60.4m. This gives InPost full control of Menzies’ newstrade and express operations.
The partnership allowed InPost to launch a B2C service called Collect which allows delivery direct from e-commerce retailers to InPost lockers. Collect supported InPost in achieving a 156% increase in UK parcel volumes in the first half of 2024. Both InPost and Menzies noted the partnership in financial results as both lucrative and successful.
“With Menzies fully integrated, we are even better positioned to create an exceptional offering in terms of quality, price and convenience for both merchants and consumers,” said Rafał Brzoska, InPost’s chief executive officer. “We would like to give a warm welcome to the whole Menzies team, including the newstrade division – an established and renowned business in an industry we are excited to enter.”
A statement from InPost promised that the newstrade division will “continue to operate as before”, and a source close to Menzies confirmed to Better Retailing that operation is “business as usual”. They added that this deal would “increase the sustainability of newstrade”.
A different source also told Better Retailing the purchase was a “good move” which left InPost with a “viable business where newstrade is a much smaller part of their overall trade.”
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Another industry expert told Better Retailing: “This means they are financially secure now for as long as their parent company is willing to be involved in the newstrade. In the inevitable long-term battle to be the last newstrade wholesale left standing, Menzies is securing strong external endorsement for its diversification while despite small scale services, Smiths News are still looking like a one trick pony.”
InPost’s announcement, said that this will allow the company to accelerate plans for “a high quality next day B2C offer”.
Neil Kuschel, InPost UK’s chief executive, added that the purchase of Menzies would be “a critical milestone in unlocking and accelerating the growth potential of InPost in the UK. As one company, we will be able to create a business designed to win in the UK and serve the B2C market at a faster rate as more consumers discover the benefits of delivery to our lockers.”
It is not yet known if this will be run on newstrade vans and, if so, what knock-on effects can be expected for retailers.
While statement promises “a fast, more cost-effective and sustainable delivery system”, it also confirms “Menzies Distribution Services (MDS), responsible for full load transport services and warehousing, will remain under the control of Endless LLP with InPost retaining a 30% equity stake.” This has the potential to increase the cost paid by Menzies for news depots, with a possibility of higher overheads for retailers.
The Fed’s head of news, Brian Murphy, commented: “The acquisition is interesting if not unexpected. The Fed looks forward to receiving assurances and more information as to how the move will affect retailers.”
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