Menzies promises merger won’t affect its retailers

Menzies has promised that a proposed reverse takeover of its distribution business by parcel delivery firm DX would have no effect on retailers.

The merger would offer huge savings for both companies and enable distribution centres to run a UK-wide, 24-hour service, with news during the night and the parcel business coming to the fore during the day.

The NFRN gave the announcement a cautious welcome. “At first sight, this could be good news for Menzies’ retail customers, particularly if it means a more cost-effective news distribution service,” said chief executive Paul Baxter.

“If that is the case, NFRN members can rest assured that we will be seeking a reduction in carriage charges, as well as a promise that service levels will be improved.”

The deal is likely to be concluded in the summer.

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Louise Banham
Louise is the editor of Retail Express, which reaches more than 50,000 stores every fortnight. Retail Express is the start of the journey for every independent convenience retailer, providing key news stories and effective, easy-to-implement advice. Louise can be found on Twitter at @RetailExpress and @LouiseBanhamRE; on louise.banham@newtrade.co.uk; and 020 7689 3353.

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1 COMMENT

  1. Menzies Distribution, for as long as I can remember, has been in constant difficulties maintaining a reliable service. In recent years their drive to reduce costs has hit my small, efficient business considerably resulting in more costs for me trying to compensate.
    I am not convinced that DX will improve the situation. Combining two unrelated businesses using the same distribution network into one will simply cause more chaos.
    Will DX have the additional staff needed to meet the requirements of news distribution to resolve the Menzies shortfall and retain their highly efficient existing service.

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