The postal market is changing. So are we. Traditional letters continue to decline, meaning that we must increase efficiency in our core letters business. The volume of parcels is increasing year on year, driven by growth in online retailing, while demand for products from overseas is supporting the development of our international business.
Where we are
These changes have already changed the shape of our business. Parcels now make up a significant proportion of Royal Mail’s revenues. International letter and parcel revenues are also increasing their contribution to our total income.
Royal Mail is uniquely positioned to benefit from continued growth in international and parcel traffic, with established parcel networks in the UK and across 42 European countries. We are evolving to build a sustainable, profitable future for the Royal Mail and our customers
To achieve our strategic aim of becoming the best delivery and media company in the UK, we are pursuing a number of objectives that include:
- Completing a company-wide modernisation programme;
- Strengthening our relationships with our unions so that we can transform the Royal Mail together; and
- Offering the right products at the right prices.
The modernisation of Royal Mail is one of the largest change-management programmes undertaken in the UK. Every single one of our processes is changing – from mail collection to delivery.
We have completed the automation of mail handling in our Mail Centres:
- Installation of 62 intelligent letter-sorting machines in our mail centres
- Installation of 574 walk-sequencing machine, meaning that three quarters of our letters are now sequenced to reflect the order in which they are delivered
We are making good progress on delivering changes across our delivery operations:
- Delivery revisions have taken place in hundreds of delivery offices. A number of revisions remain to complete the programme and to deliver our targeted savings across the country.
This is the peak time of change for Royal Mail and its people. We have closed 16 mail centres in recent years and some 50,000 people have left the Group in the last decade. Our union partners agree that transformation is needed, and we are working closely with the Communication Workers Union (CWU) to deliver our change agenda. We know that a strong working relationship with our unions is vital to our future.
We need to offer our customers the right products at the right prices. We are taking action to reshape our product portfolios and offers to reflect changing customer needs:
- We are offering new solutions to customers that reflect our business strengths. We have streamlined our bulk mail product suite to four key products, which reflect customer needs. These products can be adapted by our customers to suit their bespoke needs.
Registered Office Royal Mail Group Ltd, 100 Victoria Embankment, London, EC4Y 0HQ
© Royal Mail Group Limited 2013