Germany based food retail giant, Lidl has joined hands with the Deutsche Post DHL Group in a cooperative agreement, which will be used to install 500 DHL Packstations in Lidl stores across the country, with the objective of integrating online ecommerce with offline retail purchases. With the setup of this system, customers will be able to simultaneously pick up their online purchases from the DHL Packstation at the store, while shopping at Lidl.

This development gains importance as businesses across Germany are emphasizing on the development of avenues to minimize costs in terms of carbon footprints and last-mile distribution, especially since short windows for delivery add additional burden on last mile distribution related to ecommerce. With increasing customer demand for faster delivery of online purchases, businesses are increasingly compromising on efficiency to boost shipment rates, which increase the costs for logistics operators.

Martin Linde the sales manager for the German mail and parcel division of the Deutsche Post DHL Group stated: “The partnership will benefit all sides, and especially our customers, as 500 more DHL Packstations are being built in easy-to-reach, attractive locations, and the new Packstations are an important part of the promise we’ve made to our customers for further enhanced service quality.”

Pilot Run Starts in 12 Lidl Branches

The collaboration between Lidl and Deutsche Post will also allow customers to drop off or pick up packages at the DHL Packstations after or before shopping at the retailer. 12 DHL Packstations have already been set up at Lidl branches at Hamburg and Berlin, to test the level of acceptance for the concept among consumers. Positive responses so far are expected to result in a go ahead for the remaining DHL Packstations at Lidl stores.

In addition, recent years have witnessed strong efforts by Deutsche Post in terms of research for tech innovations and infrastructure development. The collaboration between Lidl and Deutsche Post is anticipated to generate approximately 1000 new DHL Packstations, and 5000 new jobs in the letter and parcel segment. This will result in minimizing the redundancy of movement in last mile delivery, while providing customers an offline element to shopping on ecommerce platforms.

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