The letter business is facing substantial changes

Slower growth in mail revenue streams overall (from around 4.5% to 3.5% overall to date) – global slowdown likely to impact with time lag.

C-C,C-B and B-C mail volume growth (excluding direct mail) only 1-2% while direct mail growing at around 11%.

At some stage, overall mail volumes will decline, as in the US and Canada.

Increased customer expectations.

The queality of service has declined in the recent past.

UK service specifications:
– 85% of population has 2 deliveries
– Two service levels
– Delivery to the door, Monday to Saturday
– Several collection points / collections