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

Vendr offers SaaS insight on taking control of procurement

SaaS buying platform Vendr to take part in webinar to help businesses from getting caught cold by complex procurement environments

US friendshoring supply chain policy 'divisive' - experts

Whitehouse bid to cut China & Russia adrift by 'friendshoring' its supply chains will not bring resilience and risks being divisive, say top academics

Diageo CPO Orozco to lead procurement at Kraft-Heinz NA

Diageo CPO Janelle Orozco takes up Chief Procurement Officer role for Heinz-Kraft North America, as food giant drives customer-focused transformation

DHL Express in Heathrow gorilla logistics triumph

Logistics

Global customs staffing issues hitting supply chains - EY

Logistics

Latest China Covid outbreak poses supply chain threat

Supply Chain Risk Management