PMP loses Coles, gains NewsMags

According the Sydney Morning Herald, Coles has handed its catalogue distribution to Salmat for the next two years following months of trials.

Chief executive Grant Harrod confirmed that his company had taken on the work. He told ProPrint that Salmat, which has worked with the retail giant for 20 years, provides Coles with services such as catalogue distribution, customer targeting and mapping, inbound call centre and digital services.

Harrod put the win down to Salmat's "ability to provide a sustainable distribution and communication network, encompassing a proven delivery service, reporting and audit, targeting and mapping service, and multi-channel communication solutions".

The switch follows revelations of widespread flaws in PMP's distribution operations which saw customers given incorrect delivery reports.

Believed to be worth $15 million, the loss of the contract represents a blow to PMP's attempts to revamp its beleagured distribution business, which saw the recruitment of former Salmat Distribution general manager David Chesser in August.

PMP has battled allegations regarding its distribution service, with some reports claiming that it has lost a series of major contracts, including Kmart and Myer, as a result of the reporting irregularities.

It is claimed that PMP has lost ground in the catalogue distribution sector over the past few years, with some reports claiming market share fell from 50% to 35%. Salmat, meanwhile, is said to have moved from 50% to 65% market share.

Meanwhile, The Australian has reported that PMP subsidiary Gordon & Gotch has picked up News Magazines' distribution business from IPMG-owned NDD.

News Magazines' portfolio includes Delicious, Donna Hay, Vogue Australia, Alpha and JMag.

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