Anybody for a change of name? The Post Office is now Consignia, so how about postal regulator Postcomm becoming the Deregulator? For that’s what we’re really doing — deregulating the postal market and allowing Consignia to compete in the real world.
Read MoreOn 14 March 2001 at a postal conference in Brussels, Deutsche Post, La Poste (France), NZ Post, Posten (Sweden) and other speakers gave bullish presentations. By contrast Jerry Cope, Consignia’s Group Managing Director, Strategy and Business Development, gave an emphatically downbeat view of the future of postal services. He warned that profit margins in the postal sector were not good. “The growth in the core profitable letter services is declining rapidly because of competition and regulation. At the same time the margins in the areas for diversification — parcels and logistics, and even e-commerce and banking — are dramatically lower than in the monopoly services?’
Read MoreThere’s been a lot said recently about Consignia’s problems but I wouldn’t have accepted the job of Chairman if I didnt believe it can have a successful future. Simply put, our objective is to be the best Post Office in the world. We’ve already made some crucial changes to put the business back on the road to profitability. There’s still a long way to go and we need to cut costs further, drive up our revenues and improve our product profitability. But our strategy will not just make us profitable again, but also improve services to our customers and make the company a better place for its dedicated employees to work in.
Read MoreAn undisclosed settlement has been agreed between Tibbett & Britten and Mothercare over the performance of the formers Daventry warehouse which left some Mothercare stores without crucial product lines over Christmas.
Read MorePOST Office owner Consignia is threatening to take legal action unless the regulator, Postcomm, agrees to slow the introduction of competition and allow a 1p increase for first and second-class mail deliveries.
And chairman Allan Leighton warned this weekend that he will demand yearly postal increases of 2p or even 3p if this growing competition hits Consignia profits.
Opening up to competition at the speed required by Postcomm would cost Consignia £750m between now and 2006, he told Financial Mail.
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