Tag: UK

One year on from full liberalisation – UK customers and operators are rising to the challenges.

Posted by | Dec 28, 2006 | |

Postcomm has hailed the first year of full competition as a promising start but warned there are more challenging times ahead for postal operators.

Postcomm Chairman Nigel Stapleton said:

“Full competition is off to an encouraging start in 2006 with 18 new operators now in the market. Many large mailers, both in the private and public sector, have switched to new operators who they have found to be reliable and sensitive to their specific needs. Everybody has benefited because, in response to competition, Royal Mail has delivered record service levels.

“Mail is a challenging market because it is being impacted by e-substitution and is price sensitive, particularly with direct mailers, who account for nearly a fifth of the market as they have other ways by which to promote their products and services. However, we believe there is more scope for all postal operators to introduce innovative products which will be valued by customers.

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Royal Mail eyes Sainsbury chairman

Posted by | Dec 24, 2006 | |

The chairman of J Sainsbury, Britain’s second-biggest food retailer, has been approached to become deputy chairman of Royal Mail, making him a potential successor to Allan Leighton as head of the postal group.
Philip Hampton is one of three candidates to have been shortlisted for the job and a series of interviews have taken place with the headhunter appointed to handle the search. Bob Wigley, chairman of Merrill Lynch Europe and a non-executive director of Royal Mail, has also been approached but it appears he is reluctant to take on the post.

Hampton is seen as a strong candidate. As well as chairing Sainsbury he also been finance director at Lloyds TSB and BT. Royal Mail is keen to find a deputy chairman who can be groomed to succeed Leighton when he steps down in March 2008.
However, the search has been made more difficult because none of the candidates wants to move forward until the government has decided whether it is going to back a financial restructuring at Royal Mail and support issuing 20% of its equity, which is 100% held by government, to staff.

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Christmas cards boost bottom line for UK businesses

Posted by | Dec 22, 2006 | |

Small and medium sized businesses up and down the country are set to increase their New Year profits by GBP257 million as a result of sending their customers Christmas Cards over the festive season.

According to the Royal Mail research launched today, bottom line profits of businesses are set to increase by 2.1 per cent as a result of sending Christmas card mailers – a return on investment of 3,213 per cent – with the average company spending just GBP200.

Businesses are realising the value of sending Christmas cards, with a third convinced they help to build and maintain customer relationships, and six in ten believing that they give them a competitive edge.

Alex Batchelor, Royal Mail’s Marketing Director, said: “This research shows that as a sales and marketing tool, the humble Christmas card provides a huge return on investment.

Royal Mail’s festive postbag this year of two billion items includes 750 million Christmas cards.

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UK Post office closure is branded shortsighted

Posted by | Dec 22, 2006 | |

The West Surrey branch of the Federation of Small Business (FSB) has added its voice to the mounting furore over the decision to close 2,500 post offices across the UK.

The organisation which looks after the interests of small businesses has cited that 82% of small firms believe the closure of their local post office would adversely affect them.

While accepting that many sub-post offices are loss making, it has argued that the social need must be put before profit.

A total of 88% of small firms send mail every day, 69% send invoices through the post and 94% of small firms use Royal Mail exclusively.

And with small businesses employing twelve million people the potential for this decision to have a negative knock-on effect on the economy is considerable claims the group.

Secretary of State for Trade and Industry, Alistair Darling made the announcement to the House of Commons last week that some post offices will close as early as summer 2007 as part of the cost-cutting move, branded short-sighted by the federation.

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