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Royal Mail sees surge in parcel deliveries thanks to e-commerce boom

Royal Mail has seen a surge in the amount of packets and parcels it delivers as e-commerce has taken off, according to its boss.

Speaking at the Marketforce/IEA Future of UK Postal Services conference this week, Royal Mail chief executive Moya Greene, said: “The white envelopes are going down, [but] thankfully e-retailing has taken off, so that gives us an opportunity to put through our network more packets and parcels.”

Greene claims packets and parcels have been growing by 5% in volume terms per year for the group, with its UK parcels division Parcelforce recording an 8% increase in volumes.

“When I look at what has happened in Parcelforce, which had really serious difficulties five or six years ago, it is now one of two or three profitable parcel delivery companies in the UK.

“It’s not the lowest price, but it’s one of the highest quality companies”.

Meanwhile, the group’s European parcels arm, GLS, is “probably the most profitable parcel delivery company in all of Europe”, according to Greene.

Royal Mail is starting to see the benefits of its on going modernisation plan, with an increase in group operating profit in its most recent results.

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