Rising competition impacts Royal Mail’s parcel volumes


Competition for UK parcel traffic has been growing steadily over the past few years as increasing numbers of service providers enter the market. Whether, cherry picking lucrative high volume business or nibbling away at the lower volume end of the market, Royal Mail has its work cut out if it is to maintain market share in the crucial second half, which includes Christmas.

Announcements about extended opening hours at Post Offices, including Sundays, are a definite move in the right direction as consumers switch to the growing range of local Click & Collect services offered by many retailers, along with 24 hour access to secure delivery lockers, and the convenience store drop off points which most of Royal Mail’s competitors are deploying. In fact many are wondering why it has taken Royal Mail so long to adapt to the needs of customers and optimise its retail estate. The coming year will see competition grow further as transport networks like the London Underground and Network Rail station work to gain their share of the commuting consumers’ deliveries and large players mount aggressive price-driven campaigns to grow their operations.

Read more in our Delivery Unwrapped feature which appears in our Summer 2014 edition.

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