Strategy

Parcels strategy

Our parcels strategy has three key elements:

• Getting the basics right. We have streamlined our parcels offering to make it easier for customers to choose the right service for them. We have simplified our terms and conditions and have provided our colleagues with more of the tools they need to deliver increasing numbers of parcels.
• Getting the technology right. We are investing in our IT capabilities to offer our customers the services they expect from a parcels operator, including SMS messaging and tracking services. We also aim for every postman and woman to have access to a hand-held scanner for their delivery round by Christmas 2013.
• Expanding and automating our networks. We are investing in the continued modernisation of the Royal Mail network and expanding the capacity of Parcelforce Worldwide’s express network.

Letters strategy

Our letters strategy is made up of three distinct elements

• Using our new commercial freedom to receive a commercial return for the letters we deliver
• Investing in tracking business mail to improve the value our customers can derive from the letters they send
• Growing our marketing mail business. We are helping businesses across the UK by helping them get more value from mail through MarketReach
   

Delivering our strategy

Royal Mail is the market leader in both the domestic parcels and letters markets. Our data also shows that GLS, our European parcels carrier, is in the top five in its major markets. Our strategy is to create a more customer-focused company, run on commercial lines, where we convert increases in parcel volumes into profitable growth, and manage structural decline in the letters business.

Our core strategic priorities are:

1. Being a successful parcels business
2. Managing the decline in letters
3. Being customer-focused
4. Consistently being financially successful and profitable. Obtaining access to the external capital we need to transform the business.