Express Dairies to end contact lens deliveries

Specsavers Opticians will be returning to the Royal Mail for delivery of contact lenses to patients following the decision of Express Dairies to end its mail operation from next month.

The novel enterprise, which has seen Express' fleet of milk floats deliver small parcels over the last three years, is a blow to those who want to see the end of the monopoly in UK deliveries of consumer items.

Through an agreement with TNT, Express Dairies has used its home delivery depots to provide postal services since June 2004 to deliver a range of items including books, CDs and contact lenses. Clients include Specsavers Opticians, Shop Direct, Screwfix and book publisher Grolier.

However, this week news emerged that Express Dairies'  parent firm Arla Foods was pulling out of the household delivery market, of which Express is the Royal Mail's sole competitor.

It has been reported that the decision has been influenced by plans by Royal Mail to introduce prices based on weight and size, and would reduce the margin and scope to undercut its prices.

TNT Mail is the only new entrant in the deregulated postal market to offer an end-to-end delivery service through its agreement with Express Dairies, and has the potential to reach six million households.

Postal industry regulator Postcomm said it was disappointed with Arla's decision.

Sarah Chambers, chief executive of Postcomm, said: 'It is very disappointing. In a market where there is a very substantial operator, almost a monopoly, it is important for customers that there is competition.

'Express Dairies was the only one that was competing in this area of delivering to residential customers.'