Retailer outsources logistics, sells assets to Deutsche Post
German postal operator Deutsche Post World Net said it has tentatively agreed to acquire many of the logistics assets of KarstadtQuelle Group and provide logistics services to the retailer. The transaction is scheduled to be finalized April 1.
Under the deal, DHL will take over the KarstadtQuelle’s 530 million euro ($687.6 million) department store shipping and mail-order delivery businesses for 200 million euros ($262 million), according to Bloomberg News. KarstadtQuelle is selling the businesses as part of a reorganization.
DHL plans to cut costs in the logistics businesses by as much as 5 percent and increase sales by making in-house logistics services available to other retailers, Bloomberg reported.
Deutsche Post is buying department store and jewelry warehouses, as well as the mail-order subsidiaries Quelle and Neckermann that deliver appliances and furniture. DHL signed a 10-year contract to handle all delivery operations between KarstadtQuelle’s warehouse and its department stores. KarstadtQuelle will sell off other warehouses.