Confidence at record high among exporters, DHL survey finds
The British Chambers of Commerce has published new research in conjunction with DHL Express looking at the health of the UK’s export market.
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Disenchanted companies desert Royal Mail (UK)
Business customers are deserting Royal Mail and most firms do not find the postal group an efficient organisation to work with, a study by the British Chambers of Commerce (BCC) for The Times has revealed.
The BCC sought the views of nearly 1,000 businesses throughout the country about their use of Royal Mail and their experience of the organisation.
Sixty-eight per cent said that they did not find the postal group to be a “professional, efficient organisation to do business with”; 55 per cent said that Royal Mail was less reliable than it was five years ago and only 8 per cent thought that it had improved.
In a striking example of how much electronic communication has hit the use of postal services, nearly 86 per cent of businesses said that they used the internet and e-mail for transactions that they would have put through Royal Mail five years ago.
The BCC survey comes as the National Federation of SubPostmasters (NFSP) gives warning today that 3,000 more post offices may be forced to shut if the Government withdraws post offices’ rights to handle benefits and pension payments through the post office card account.
Royal Mail is in the middle of a programme to shut 2,500 post offices in its loss-making network.
Subpostmasters will press the Government to renew the contract for the post office card account when it comes up for review next year.
Royal Mail cuts may end Saturday post
The proposal to reduce deliveries to five days a week will also see fewer first class letters arrive the day after they are sent.
The recommendations, to be submitted in the next 10 days as part of a review into the future of the postal sector, are included in a radical plan by the regulator Postcomm to shore up finances at the Royal Mail.
It hopes to secure the future of the “universal service”, which means the company promises to deliver letters to each of the 28 million add-resses in Britain for the same price.
Moving from a six-days-a-week delivery would mark a further reduction of services by Royal Mail, which has already been allowed to end twice-daily deliveries in an effort to restore profitability.
The average delivery time has slipped and post boxes are no longer emptied on a Sunday. Any attempt to drop the Saturday delivery would be fiercely opposed, not least because it is enshrined in law under the Postal Services Act of 2000. Politicians, consumer groups, businesses and the unions say Postcomm’s proposals would lead to a further diminution of the service.
It is the first time that the Royal Mail has ever made a loss from this service.
Postcomm’s recommendations about cutting the six-day service are included in its submission to the review, the Telegraph understands.
The regulator also suggests that the Royal Mail’s delivery targets should be lowered.
Read MoreSuffering SMEs turn to alternate mail services
Small businesses have been hit hard by the postal strike and are now seeking out private alternatives to Royal Mail, a British Chambers of Commerce survey has revealed.
The snap poll, conducted over the weekend, found that 88pc reported the strikes had “a significant impact” on their business, with cash flow and loss of sales particular problems.
Of those affected, 55pc said they were now more likely to use private delivery companies.
The BCC said the figure reflected the anger felt by small businesses at the impact the postal strike.
The problem for small firms is that their options are limited by the fact that the Royal Mail’s biggest competitors, such as TNT, Business Post and DHL, are at the same time customers.
Only Royal Mail does the ‘final mile’ bit of deliveries meaning small firms, like the rest of the population, are in the words of one business owner, over a barrel.
Mr Frewin says the last 25 years has seen a consistent rise in the volume of mail. Over the last 18 months that figure has declined. “Is it a blip or a sign of long-term decline? Our concern is that what started with a one-day strike and now two-day strikes, will continue. The worry is that the postal industry will be brought to its knees.”
Talk is that TNT might be just the business to give Royal Mail a run for its money when it comes to ‘final mile’ delivery, but the discussion about another provider stepping in to compete isn’t new.
Read MoreBusiness deserts Post Office in the UK
Small businesses are ready to desert Royal Mail and switch to private sector delivery rivals after counting the cost of the damaging postal dispute, a survey shows.
More than half the small companies surveyed for the British Chambers of Commerce (BCC), say they are more likely to use alternative services to reduce the risk of further disruption to their business.
Rival mail services, the internet or a personal limited service for key customers are among the options they are exploring.
Royal Mail is braced for a backlash from dissatisfied customers, but is banking on higher rates charged by rivals to prove a deterrent for business customers to switch. The weekend BCC poll, based on replies from 183 members, showed 62pc of them have already started using alternative services to send and settle invoices, while 88pc have seen their businesses suffer from cash-flow problems and lost orders and other costs involved in meeting the cost of the strike.
Natalie Evans, head of policy at BCC, said the survey results hammered home the damage to Royal Mail and the loss of confidence among customers. “It will not be easy for Royal Mail to regain their confidence,” she said.
Royal Mail has seen business shrink even before the strike with the loss of 40pc of its bulk-mail business. Rivals TNT, Business Post and Deutsche Post have been working flat out during the strike to ensure they keep the new business.
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