Commentary On Royal Mail Decrease In Revenues
Stuart Miller, CEO And Co –Founder, ByBox
“Whilst the introduction of Amazon delivery lockers will certainly have had an effect on Royal Mail sales, it is not entirely correct for the business to believe this is the sole cause. Despite a slowdown in the retail sector as reported by the BRC, logistics companies have continued to thrive in today’s market, snapping up Royal Mail’s share of the parcel volume. These businesses have been busily adapting their services to the 21st century retail model that has won this battle. Next-day delivery, click & collect, locker pick-up points, like ByBox offers; these are shifts that have won over consumers and driven growth outside of Royal Mail’s control of the UK delivery market.
Indeed John Lewis boss Andy Street reflected this shift when he recently said that he expects click and collect to account for more online sales volumes than home delivery this Christmas. Considering that the BRC reported a 19.2 percent increase in online purchases over the last festive season and the fact that Royal Mail’s parcel output still stayed flat, expectations for increased sales this Christmas through click and collect cannot be good news for the business. If Royal Mail wants to remain competitive and hit its targets for the future, it must adapt to changing consumer expectation quickly – its competitors already have.”