Further growth in online shopping during 2006 set to fuel van rental

                                   
Continuing growth in online shopping during 2006 looks set to fuel increasing demand for van rental from parcel delivery and retail company fleets, according to TLS Vehicle Rental.

Figures from market analysts Verdict released this week show that £8.2 billion of goods were bought online in 2005 - up 28.9 per cent year on year. TLS has already reported an increase in van rental from these sectors during November and December due to booming online shopping.

Sean Welham, marketing director at TLS, explained that business from these fleets had been rising for some time, with customers attempting to balance their short term need for more vehicles with a cautious view of medium-long term economic prospects.

He said: "There are very mixed economic signals at the moment. Some sectors are booming - and online retail is clearly one - but other indicators seem to show that times are tough. For example, there were a record number of personal bankruptcies last year.

"Against this backdrop, online retail faces a problem. They need delivery capacity now but they are cautious about buying a van or entering a long-term contract. And that's when rental makes a lot of sense.

"Hiring vans gives these fleets the flexibility to meet short term demand but also provides breathing space to take stock and wait until they feel the confidence to buy or long term lease their own new vehicles."

Welham added that vehicle rental often became more popular when there was concern over future economic prospects, offering businesses the option of taking a vehicle on much more flexible terms than other acquisition methods such as traditional contract hire or outright purchase.

He continued: "We expect to see this pattern continue into 2006 with increasing demand from delivery and retail fleets simply because there are no signs that the economic picture will become any clearer in the short-medium term.

"There is an old saying in the rental industry - 'when you need a vehicle, it's yours; when you don't, it's ours' - and that is an attractive proposition to many of these fleets at the moment."

About TLS

TLS Vehicle Rental operates one of the UK‚s largest commercial vehicle hire and rental fleets with more than 25,000 vehicles operating from 26 locations across the country. 

A wide range of commercial vehicles from car-derived vans to 7.5 tonne tippers are available for rental covering periods from a day to three years, with a expansive customer base encompassing everyone from private individuals needing a small van for a day to multinational corporations with complex fleet logistics requirements.

Based in Sale, Cheshire, the TLS is part of GE Equipment Services, a division of the General Electric Company, one of the world's largest and most respected companies.

Further details can be found at www.tls.co.uk.