The Financial Times Deutschland reported the logistics giant does not feel that the home delivery service is profitable.
“It’s just not worth it,” a Deutsche Post official told the paper.
The end of the home delivery portion of Deutsche Post’s relationship with troubled chain Karstadt marks the further deterioration of a once-lucrative business with Arcandor, Karstadt’s parent company, which has filed for insolvency. Arcandor’s financial troubles have led to at least €250 million in losses for Deutsche Post.
DHL’s logistics contract with Karstadt – which also includes shipping services to its stores – once earned Bonn-based Post around €500 million annually. After the discontinuation of the home delivery service, that number will drop to around €150 million, according to Post sources.
The termination of the delivery contract with Swedish home furnishings chain Ikea – in Austria as well as Germany – will affect a business thought to be worth €15 million a year. As with Karstadt, DHL will continue to provide some logistics services to Ikea, such as long-distance freight transport.