Royal Mail are going to focus on their overseas business for growth. In their full year results for the 2016 – 2017 year, they handled 6% fewer letters but revenue from GLS, their overseas arm, grew 9%. However the Internet is racing to the rescue as they handled 3% more parcels than the previous year.
Overall the results, which did deliver a rise in profits from £267m to £335m, seem to have pleased investors.
“GLS is performing very well and is growing revenue organically and through acquisitions. Its deep expertise and focus on B2B parcels in multiple geographies – now 41 European countries and seven states in the US – positions it to be a greater force for growth for the Company. We will continue to invest in careful and focused international expansion by GLS.”
– Moya Greene, CEO, Royal Mail
It’s pretty evident that the letters business will continue to decline, just about every company I deal with from Utilities, mobile phone, Internet provider and even my bank are forever begging to do away with paper bills and move to online billing. We’re sending fewer greetings cards as a nation and emailing rather than popping a letter in the post.
So if we’re not going to send as many letters, Royal Mail really needs your ecommerce parcels business to keep their UK business turning over. What do Royal Mail need to do to keep (or win back) your business?