Royal Mail plans to almost double the number of parcel exchanges — including shops, lockers and parcel post boxes — to 45,000 locations by 2030, as part of a strategy to meet growing demand for drop off and collection points outside of the home.
In the past two years, Royal Mail has moved to expand its multi-channel network and make parcel collection, sending and returns as convenient as possible. During that time it launched parcel lockers and more recently its Royal Mail Shop brand.
With the planned expansion, customers in urban areas will be within a five-minute walk of a Royal Mail parcel point, with targets of five and 15 minutes maximum drivetime for suburban and rural areas, respectively, Royal Mail said in a news release on Tuesday.
The continued popularity of online shopping and rapid growth of marketplaces like Vinted are driving Royal Mail’s investment in parcel infrastructure. About 15% of parcels in the United Kingdom are delivered to out-of-home parcel points — a figure expected to rise to around one-third within five years. Locker usage is also on the rise, with 40% of UK adults having used one in the past year.
“Royal Mail is committed to being the UK’s most convenient delivery company. This ambitious new target strengthens our leading position, with the largest parcel point network in Britain, giving customers even more convenience and choice,” said Interim CEO Alistair Cochrane. “For many, nothing beats the ease of home delivery or collection, but we’re seeing a clear shift towards more people choosing lockers and shops. Our strategy is to maximise our own network and work with partners to ensure we are always the nearest and simplest option for sending, collecting, and returning parcels.”
Parcel points are in addition to Royal Mail’s 115,000 post boxes, which can be used for parcels small enough to fit through a letterbox. Meanwhile, Royal Mail is modernizing 3,500 future post boxes to accept larger parcels up to the size of a shoebox.
To achieve its target, Royal Mail will continue to double down on its multi-channel approaching, including:
- – Accelerating the rollout of parcel lockers, working with partner companies to secure prime locations with high foot traffic.
- – Growing the Royal Mail Shop brand – — nearly 8,000 convenience stores will feature the brand and offer parcel postage and stamps over the counter.
- – Exploring new innovations, such as self-service kiosks, partnerships with retailers, and a broader rollout of parcel drop boxes.
- – Maintaining existing parcel points, including customer service points at delivery offices and through ongoing partnerships with 11,500 Post Office branches.
Posts worldwide are investing heavily in their parcel businesses. Australia Post, for example, is investing hundreds of millions of dollars in new parcel hubs and delivery stations. Canada Post wants to reform operations so that it can offer weekend parcel delivery and better compete with private couriers, but is facing opposition from one of its main unions about the planned hiring of part-time workers. And Singapore Post is partnering with DHL eCommerce to increase the number of parcel drop-off points.
Click here for more FreightWaves/American Shipper stories by Eric Kulisch.
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