Yodel restructure will be troublesome, warns rival City Link

Yodel's consolidation of its property portfolio and people is going to be troublesome, warns City Link.

Parcel giant City Link says its botched integration with Target Express in 2006, which was followed by years of losses, has taught it the value of getting a restructure complete before you go out and market a new merged business.

As revealed by Commercial Motor, Yodel - the rebranded name for the merged operations of the domestic B2B and B2C businesses of DHL Express (UK) and HDNL - is expecting to shut up to 60 of its 120 depots and a number of strategic hubs by the end of 2012.

Duncan Faithfull, City Link sales and marketing director, tells Roadtransport.com: "Yodel has done the marketing and verbal side of the integration ahead of the physical integration, and I think this could be troublesome. We have been through all of this before, and it is very difficult. I think the market place is nervous about Yodel's restructure."

He adds: "Yodel is doing what it has to do, but if it is done aggressively and in a quick period of time, there are going to be service issues."

Faithfull's comments come at the same time as City Link's parent Rentokil Initial revealed Q1 losses have widened by £6.3m at the parcel arm, but that a recovery plan is on track to get back in the black by Q4.