Covid-19: DPD invests £200m to handle surge in online demand

Delivery firm DPD is to invest £200 million in regional depots and new vehicles as it gears up for dealing with the new levels of eCommerce sales that it predicts will hold up even when all shops have reopened.

The major investment relates to £100 million to be spent on vehicles, £60 million on 15 new regional depots – that equates to 10 more than originally planned in 2020 – and the remaining sum is to be committed to technology infrastructure.

Dwain McDonald, chief executive of DPD, said: “We are experiencing the biggest boom in online retailing in the UK’s history and we are making this unprecedented investment in our infrastructure and people to ensure we can continue to meet the high levels of demand for our services.”

Even though DPD has been enjoying ongoing growth over the past decade, the company believes that what it has experienced in recent months as a result of Covid-19 represents a potentially much more significant shift in consumer behavior.

“I do think the high street will bounce back from where things are now, but we have to base our modelling on our conversations with retailers and their projections. It looks like there will remain a much greater reliance on eCommerce in the future – that’s going to be our ‘new normal,” adds McDonald.