Royal Mail Faces Harder Times as Pandemic Parcel Spike Wanes
- Covid-19 boost to volumes fading while challenges remain
- Inflation hitting company as ‘everything costs more,’ CEO says
An employee sorts through a trolley of parcels the Royal Mail Plc sorting office in Chelmsford, U.K.
Photographer: Chris Ratcliffe/BloombergThis article is for subscribers only.
Royal Mail Plc sees sales declining in the coming year as the historic British company posts fewer Covid-19 test kits and parcel volumes fall with consumers returning to shops.
The 500-year-old postal service said the changing environment means cost savings need to be made faster, according to a statement on Thursday. Parcel volumes for the year ended March 27 were up 31% compared with the pre-pandemic period but test kits accounted for about 7% of total packages sent, the firm said, while addressed letters continued their decline in volumes.