Our vision is to be recognised as the best delivery company in the UK and across Europe. Our three-part strategy aims to deliver this whilst generating sustainable shareholder value and supporting the continued provision of the Universal Service.

Strategic priorities


  1. Being a successful parcels business. In the UK we intend to maintain our pre-eminent position by retaining and growing existing business and increasing our presence in growth areas. In Europe we will continue to deliver growth organically and through selective acquisitions. We will roll out new products to meet increasing demands.
  2. Managing the decline in letters. We aim to mitigate the impact of e-substitution by demonstrating the value of letters to UK consumers and large businesses.  We will seek to protect and improve revenue. We will continue to make the case to Ofcom for a level playing field for all letter delivery operators in the UK. We will seek opportunities for further efficiencies across our pipeline.
  3. Being customer focused. We will continue to be flexible to meet changing customer demands. The rollout of improved IT capability will offer business customers improved access to products and services, better visibility of their mailings and improved customer data. Consistent deployment of delivery standards across our UK operation aims to drive up average first time delivery rates for parcels.



The parcels and letters markets in the UK remain highly competitive. We estimate that volume growth in the addressable parcels market (1), will reduce to around 1-2 per cent per annum in the short term (2), depending on the speed and extent of rollout of Amazon’s own delivery network. We expect that UK addressed letter market volumes, excluding elections, will decline by 4-6 per cent per annum in the medium term.

GLS performed well in 2014-15 but the combined impact of German minimum wage legislation and the disposal of its subsidiary, DPD Systemlogistik, could reduce GLS margins by around 5-10% in 2015-16.

Investments in our technology, our network and our people mean we are well placed to meet these challenges. We are poised to step up the pace of change to drive efficiency, growth and innovation.

(1)The least time-sensitive type of delivery

(2) Defined as individually addressed parcels and packets weighing up to 30kg, that do not require special handling and comprise goods that have been ordered based on Triangle Management Services/RMG Fulfilment Market Measure. Excluding International


Strategic initiatives



  • Growing our presence in faster-growing areas of the UK parcels market, such as clothing and footwear

  • Enhancing our ability to handle larger parcels by being more flexible with e-retailers

  • Rolling out handheld devices and supporting IT systems to track more parcels

  • Introducing automated parcel sorting to around 20 of our busiest Mail Centres

  • Developing  IT-led services, like Parcelforce Select, to improve customer control of parcel delivery

  • Targeting new markets, including through selective acquisitions in Europe

  • Rolling out FlexDeliveryService to more European markets.


  • Maintaining a high Quality of Service

  • Promoting the value of marketing mail through targeted new-business campaigns, like Mailmen

  • Driving revenue protection through the cancellation of stamps and other initiatives

  • Providing information-rich customer mailing data through further uptake of Mailmark®

  • Continuing to make the case to our regulator, Ofcom, for a level playing field for the delivery of letters in the UK, including the development of a comprehensive regulatory framework for the Universal Service.


  • Driving improvements in first-time delivery rates through the consistent deployment of standards like Delivery to Neighbour and Nominate a Neighbour

  • Using standardised processes, training and employee engagement to improve performance

  • Investing in our Enquiry Offices to enhance customer experience

  • Continuing to drive down complaints

  • Improving access to our products and services, including Sunday opening

  • Providing improved online platforms for sole traders, micro-SMEs and SMEs.