Independent retailers are up in arms about the cutting of the weekly bonus volume from delivery company Evri which has been announced, and which comes into force on 6 April.
In a letter received by retailers this week, the firm explains that parcel volumes have grown by tens of millions across its network, “driving additional footfall and revenue for retailers.”
Mo Razzaq, the national president of the Federation of Independent Retailers (the Fed), said he will lose several hundreds of pounds in bonus payments over a year, as a result.
He added: “In a letter advising of the change, Evri celebrates the continual growth of shopping online in the UK, adding that more and more customers are choosing to use ParcelShops to send, collect and return parcels.
“Evri then describes ParcelShops as ‘the heart of its business’ and ‘important to our customers’ and states that it wants to share that growth with us. Yet in the very next sentence, it advises of a “small change to the weekly volume bonus, which will take effect from next month.”
Razzaq said on average he receives £23 a week in bonus payments but because of this change, this will fall to £17. In its full year of accounts to February 29,2024, Evri recorded a revenue of £1.7 billion and a record-breaking profit of £117million - more than double the previous year’s figures.
Razzaq concluded: “With Evri announcing record profits and acknowledging the key role retailers play in this, cutting our bonus payments and denying us hundreds of pounds as a result is a sharp blow indeed.”
Evri was approached by Convenience Store for comment and said in a statement. “Our ParcelShops are at the heart of our business and the communities around us and our network continues to offer customers and small businesses an easy way to send, collect and return parcels.
“For ParcelShop owners, our continued business and volume growth continues to offer them increased earning potential, as we have seen in the growth of parcel volumes they handle over the last few years and the positive impact on footfall in their stores as a result.”
It added that, for background, there have been no changes to its parcel rates, as ParcelShops will still continue to be paid the same amount per parcel.
“This change only impacts the weekly volume bonus, which is paid only when a shop reaches an agreed parcel volume figure. We’re pleased to continue to offer a bonus, on top of standard per parcel rates,” it added.
“The changes have been implemented to allow us to remain competitive across the industry. In line with our contractual obligations, we have written to those ParcelShops affected to allow them 30 days notice of any changes. We anticipate growth in ParcelShop volumes this year, and overall earning potential for shops should also increase as we meet these targets.
“Volume bonus on average only accounts for a minority of parcelshop earnings, with the majority being driven from parcel rate, where we have made no change.”
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