Royal Mail Privatisation
Privatising the Parcel
With the Royal Mail being floated on the stock market we look at what changes we may see to delivery services and how this may affect the world of retail.
I’m sure most people will have heard about the privatisation of the Royal Mail and the need to sell off this national service to create a more efficient system, but in the run up to Christmas and with more and more people utilising online shopping, how will this affect our festive ordering? The Post Office branches that are in our towns and cities across the UK have not been affected
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Many Royal Mail prices have in fact already been steadily increasing over the last few years - three years ago a second class stamp cost just 32 pence but has now risen to 50 pence.
James Greenbury, Chief Executive Officer of
Parcel2Go.com
more cost effectively. There is also the worry that staff may strike, and with the run up to Christmas already well on the way this may affect online retailers.
James Greensbury comments “In the short‐to‐ medium‐term, there is a very high possibility that delivery times will be widely disrupted due to industrial action by Royal Mail workers. In terms of price, many Royal Mail prices have in fact already been steadily increasing over the last few years ‐ three years ago a second class stamp cost just 32 pence but has now risen to 50 pence – an increase of over 50%. We would expect this trend to continue following the flotation.”
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in this sale but the delivery and collection service will now see some changes. Over the recent years postage prices have already seen an increase and with the Royal Mail privatised we may see prices rise even higher. All this may have a detrimental effect on online shopping with consumers loath to pay for delivery. The other major change will be the number of deliveries each week, as with more companies now able to offer a similar service, the number of Royal Mail deliverys may be cut. James Greenbury, Chief Executive Officer of
Parcel2Go.com fears that prices will rise, we will see fewer
delivery and we may see a change in consumer
shopping habits with them
turning to click and collect or the high street to receive items quickly and
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www.a1retailmagazine.com
With the privatization being in its infancy it is probably too early to tell how the universal delivery service will be affected but we can probably say that if the new Royal Mail can’t offer a similar or better service than before online retailers and consumers will look to other companies to fulfill this gap in the market. With many retailers already looking for alternatives to traditional delivery such as click and collect we may see this or similar services become the preferred option.
Contact
Parcel2Go.com www.parcel2go.com
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