The increase in online retailing is driving a significant increase in the number of parcels we deliver throughout our network.
As the mail mix changes, we are committed to meeting this demand and develop new services that drive fresh, profitable revenue streams. Growing our parcels business is part of our key strategic objective to drive profitable growth.
We have a major parcels sector, which makes up a significant percentage of our annual business revenue.
UK Parcels, International and Letters (UKPIL) covers the business activities of both Royal Mail and Parcelforce Worldwide. We carry parcels through our three UK networks: the Royal Mail core network, Parcelforce Worldwide and Royal Mail Specialist Services.
Parcelforce Worldwide is UKPIL’s express parcels business which handles some 63 million parcels a year. It has one of the highest quality of service records in the express parcels industry. In a market where competition is both open and intense, Parcelforce Worldwide already offers a full range of timed options for UK and international delivery. Further investment in the business including IT capabilities, will ensure that Parcelforce Worldwide’s customers continue to have industry-leading delivery options in due course.
Royal Mail delivers parcels, addressed and unaddressed mail as well as international services for business and social customers. The company is also renewing its focus on its advertising and direct mail business to grow its share of the UK advertising market.
Royal Mail Specialist Services provides urgent ‘in-night’ deliveries through it’s Relay network and Sameday deliveries through the Royal Mail Courier Services network.
General Logistics Systems (GLS) is Royal Mail Group’s continental European parcel carrier, operating across 42 countries, including Germany, France and Italy. It delivers more than 360 million parcels a year for 220,000 customers.
GLS is one of Royal Mail’s most significant assets, benefitting from the expansion of our parcels business across the continent and into Eastern Europe. It is a significant revenue contributor to the business.
Investing to meet changing customer needs
We have invested significantly in tracked services to support both retailers and shoppers, making it easier for them to monitor the progress of an item. We have also extended the opening hours of our 600 busiest enquiry offices in response to customer feedback.
Our parcels business is an important area for the group. We will be focusing our energies on expanding the business and increasing revenues throughout our programme of transformation and change.
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© Royal Mail Group Limited 2013