THE Post Office has signed its first ever agreement with an external courier firm in its 360-year history.

The deal, with giant DPD, will mean customers can pick up parcels using the service at Post Office branches across the country.

Bosses at the Post Office hope to cash in on the growth in click-and-collect services during the Covid-19 pandemic.

Customers previously could only collect Royal Mail parcels from branches, but DPD will not be able to leave packages at the stores from next week.

The service will be available in 250 branches by the end of the month and at 1,500 sites before the Christmas holidays.

Click-and-collect services increased 14 per cent year on year, according to the Post Office.

Bosses also believe that leaving the pandemic and moving into a more open world again does not necessarily mean the use of this service will decrease.

They feel with employees returning to offices, click-and-collect services could remain strong, with people heading to Post Offices near their workplaces when no longer at home for deliveries.

Post Office chief executive Nick Read said: “Combining the biggest physical retail network with one of the Europe’s best-known logistical carriers provides greater customer convenience, footfall for postmasters, and helps people back to the high street as Covid-19 restrictions ease.

“I’m delighted that, through our partnership with DPD, customers can select their local Post Office to collect their parcels and know that they are often open longer hours, staffed by a knowledgeable postmaster and located moments from where they live.”

Bosses also said the deal will help reduce both companies’ carbon footprint, with vans no longer having to make multiple stops to drop off parcels, while at the same time encouraging people to return to their local high street on foot.

There is an average reduction of 63 per cent in greenhouse gases when using click-and-collect compared with home deliveries, according to DPD.

DPD chief executive Elaine Kerr said: “This is a significant, long-term partnership between two brand leaders in the parcel industry and comes at a time when the convenience of online shopping and delivery is more valued than ever.

“This partnership enables us to offer more options at the point of purchase, while the parcel is in-flight and on those occasions when we can’t leave a parcel safely.”