Royal Mail announces £75mil expansion

By Freddie Pierce
Royal Mail has announced a £75 million four-year investment programme for its UK express parcel business, Parcelforce Worldwide. The new investme...

Royal Mail has announced a £75 million four-year investment programme for its UK express parcel business, Parcelforce Worldwide

The new investment plan hopes to utilise an increase in online retailing, part of the Royal Mail Group’s strategy to grow its express parcels business in the UK and Overseas.

The UK express parcels market is currently worth £5.8 billion a year, accounting for 48 percent (£4.2 billion) of Royal Mail’s total revenues in the last reported financial year, excluding Post Office Ltd. The last financial year saw a 20 percent growth in online shopping, which is expected to represent 12.4 percent of GDP in 2016 .

 

SEE RECENT STORIES FROM THE WDM CONTENT NETWORK:

The new investment will see the creation of 1,000 new jobs over the next four years, in addition to expanding it’s warehousing space with the opening of a new parcel processing centre in Chorley next year. In addition, nine existing depots will be expanded or moved to larger sites, with two new depots being added in Cornwall and Hampshire.

Royal Mail Group’s Chief Executive Moya Greene said: “Our £75 million investment is part of Royal Mail Group’s strategy to grow its parcels businesses in the UK and overseas. Our strategy is to convert the rise in parcel volumes in to profitable growth. That means becoming a much more customer-focused company being run on commercial lines and investing in new, vital technology.”

Royal Mail Group has three parcels networks in the UK: Royal Mail’s UK parcels operation; Parcelforce Worldwide and Royal Mail Specialist Services. Royal Mail Group is already the trusted partner of some of the UK’s largest online retailing companies. Supported by continued growth in online retailing, the Group’s UK parcels volumes grew by 6 per cent and revenues by 10 per cent in 2011-12.

Share

Featured Articles

IBM: Supply Chain Data is Sustainability 'Blockage'

IBM study highlights sustainability disconnect between intention and impact, with 76% of execs agreeing it's crucial but just 30% making much progress

Heineken Toasts Success of Supply Chain Transformation

Digital transformations have a notoriously high failure rate but not so at Heineken, who has transformed its European logistics operations to great effect

GEP's Procuretech Advice, as new Scope 3 Reporting Laws Loom

GEP issues advice around mandatory Scope 3 reporting, an issue that will figure large at Sustainability LIVE: Net Zero, being held in London

Cainiao: The World's Largest Ecommerce Logistics Provider

Operations

FedEx Express Opens Singapore Logistics HQ

Logistics

Supply Chain Problems Sees Partnerships Programme Grow

Operations