Business & Investment

Royal Mail Master Plan for Sunday Parcel Boom

Royal Mail delivers packages on Sundays to dominate the battlefield of online shopping

  • The boss has created a “roadmap” that can multiply Sunday’s suggestions by a factor of 10.
  • Group Hail is planning a “revolution” similar to the end of Sunday’s trading restrictions
  • Waiting for your luggage to arrive until the end of the weekend is over.

Royal Mail has entered a fierce battle with its rivals, paving the way for the first full-scale Sunday parcel delivery service.

Boss has created a “roadmap” that can multiply Sunday’s suggestions by a factor of 10 to put a 506-year-old business at the forefront of weekend online shopping.

The group welcomed a “revolutionary” plan similar to the end of trading restrictions on stores on Sunday in the 1990s. It will also mark the end of frustration waiting for the parcel to arrive until the end of the weekend.

Set on stone: Royal Mail welcomed plans for a “revolution” similar to the end of Sunday’s trading restrictions on shops in the 1990s

This strategy is part of Simon Thompson’s CEO’s plan to transform the business and gain market share from competitors such as Amazon, DPD and Hermes (now known as Evri).

Internet purchases surged during the pandemic. However, with the end of the blockade restrictions, demand is declining. Royal Mail is also facing decades of declining letter volume as more emails are sent digitally.

Nicklandon, the group’s commercial director, said the plan was to increase weekend orders from shoppers and grow the entire parcel delivery market.

Royal Mail, like any other carrier, offers limited Sunday service to about 75 major retailers.

But Landon said Royal Mail will serve retailers of all sizes this week, creating a platform for shops of all sizes to serve millions of customers.

This means that online shoppers will have the opportunity to order items on Friday night or Saturday and have them delivered on Sunday.

He said the scale of the Royal Mail service could standardize weekend shopping for Sunday parcel delivery. He compared it to the changes in the high street earthquake of the 1990s when the store was first allowed to trade on Sunday.

Landon added: “We are the largest parcel delivery company, and our ambition, and the reason we are building at this scale, is to be at the forefront of Sunday deliveries.

‘Order any day of the week and you will receive the item the next day.

“There is a clear demand from consumers for this.

“In the physical store world, we’ve had seven days of shopping in the last three decades. We believe we have the opportunity to shop online and deliver,” he said.

If demand meets expectations, Royal Mail plans to double Sunday deliveries by the end of the year as part of accelerating the program. “What we’re doing today is to make sure we can provide scale. If more people want to use it, we can build from it,” he said. .. “We are trying to open this feature to all businesses and all consumers.

“So for us, this is the beginning of a revolution. It’s a roadmap until Sunday is the full delivery date. It doesn’t happen overnight. But this is the first step.”

Initially, the plan will include a follow-up 24 “next day” service, Landon said. However, Sunday deliveries may be offered as part of other services as demand accelerates. This includes a two-day special delivery parcel. Royal Mail’s share price has fallen 38% to £ 3.24 so far this year as earnings peaked and profits shrank. There is growing concern that fuel and labor costs can put further pressure on margins.

The former state-owned enterprise is currently in fierce negotiations with the union over wages.

That offer (5.5% salary increase if goals and conditions are met) is opposed by the Communication Workers Union.

The union wants “stringless” wages to rise in line with inflation. It is expected to reach 10% by the end of this month. If no agreement is found by the end of this month, the CWU says it will call it a strike ballot. This is the first strike in almost 10 years. Royal Mail also requires workers to commit to Sunday’s shift to accommodate the new service.

Landon said he was not part of a paid negotiation team, but added that “the current development has been agreed with the union.”

The pressure Royal Mail faces on costs has attracted attention from “shortsellers” in recent months. Investors are betting that stock prices will go down. However, Royal Mail shares were able to gain support from its largest shareholder, billionaire Daniel Kretinsky. He holds a 21 percent stake.

Landon said Sunday’s delivery plans did not include the letter so far, but added: If we see market demand, we wouldn’t say no to expanding this to other services. To some extent, this is “if you build it, they will come”.

“If we open this up to all retailers, we will eventually have access to about 10 times the amount we are processing for Sunday deliveries.”

advertisement



Royal Mail Master Plan for Sunday Parcel Boom

https://www.dailymail.co.uk/money/markets/article-10863397/Royal-Mails-masterplan-Sunday-parcel-boom.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 Royal Mail Master Plan for Sunday Parcel Boom

Back to top button