Internet shoppers deliver a lifeline for post offices

[TrueBlueTerrier]

http://www.walesonline.co.uk/countrysid ... -22542417/

THEY were once seen as bastions of queuing pensioners, but the nation’s struggling post offices may have found an unlikely new saviour in a generation of internet shoppers.

In the past year post offices in Wales say they have experienced a surge in sales of around 10%, largely due to high-spending internet shoppers and fans of web-based auction sites such as eBay.

And over the next two years, Royal Mail says it expects business generated from online sales and home shopping to increase by around 20%, prompting claims internet shoppers could help prevent the demise of this mainstay of the high street.

Vias Sharma, who has worked for the post office in Wales for more than 30 years, said: “This type of custom could give post offices a new lease of life, a bit like giving a fish out of water a drink.

“People who buy and sell goods online have to post their parcels somewhere, and it also means buying wrapping paper, padding and perhaps some boxes.”

Mr Sharma, 63, who runs Cardiff’s Albany Road post office with his 59-year-old wife Danesh, added that in one year alone he has seen his custom grow by around 8%.

“I would be surprised if many post offices said they hadn’t noticed this too,” he said.

It is a phenomenon that is particularly noticeable at this time of year, with many presents having been bought online and then dispatched via the nation’s postal network.

Tim Garrett, Royal Mail’s general manager for home shopping, said consumer- to-consumer trade, non-professionals selling and bartering for goods via websites like eBay, is now worth around £300m a year to the company.

He said: “Between 2009 and the end of 2010 we think this will have risen by around 15% or 20%.

“There has been a growth in online retailing and this business is very important to us.”

He added: “Ten years ago more than 60% of home deliveries would have been created through orders placed in-store, whereas only 1% would have been created online.

“Now around 41% are created online and just 45% are generated elsewhere. Give it 12 months and online will be the biggest player.”

The boost comes at a pivotal moment in the history of the much-loved institution, at a time when Post Office Ltd is reviewing the viability of its branches.

In Wales, its controversial branch closure programme has seen 132 branches shut down in Mid, South, East and West Wales.

The nation now has 736 branches remaining, with 40 of those closed being replaced by mobile “outreach stations”.

Business expert Brian Morgan believes Royal Mail must make the most of online opportunities – and “get its own house in order” – to compete effectively with other internet delivery firms.

The professor of entrepreneurship at the University of Wales Institute, Cardiff, said: “We are going to continue to see more purchasing over the internet.

“The Post Office is well versed in providing a parcel service, it has been doing it for something like 400 years and it has all the procedures in place to deal with this.

“And with Parcelforce running alongside its daily service, which it has a social duty to deliver every day, it is geared up to get better and better.

“Its delivery service should be a lifeline for the Post Office.

“However the Post Office has been hit hard by the privatisation of some of its top-end services, and it is now competing with other delivery companies.

“Customers can cherry-pick services that can be offered by other firms, cheaper than from the Royal Mail. It also has an awful record – on industrial relations, strikes and labour market flexibility – which is holding it back.

“The Royal Mail needs to become more efficient, improve its industrial relations and get itself into the 21st Century.

“Otherwise it risks being competed out of the market by the private sector.”

[Stormproof]

Perhaps RM should start investing in Packet deliveries and not leaving the stuff hanging about for days, there is only so much we can squeeze into a delivery pouch. Its about time dedicated packet duties were bought back into delivery offices.

[DGP1]

Perhaps RM should start investing in Packet deliveries and not leaving the stuff hanging about for days, there is only so much we can squeeze into a delivery pouch. Its about time dedicated packet duties were bought back into delivery offices.

Vans for every delivery If we're going down the route of packet deliveries then every duty should have a van (maybe one van for two deliveries) but the number of vans should increase.

[janitor]

Lets develop a special arm for packet and parcel delivery we could call it something like "Parcel Force"

[andy2007]

Lets develop a special arm for packet and parcel delivery we could call it something like "Parcel Force"

Have you even read the article?
What other growth areas are there for RM. Other than small parcels?

[norbert]

Lets develop a special arm for packet and parcel delivery we could call it something like "Parcel Force"

Have you even read the article?
What other growth areas are there for RM. Other than small parcels?

Management class them as " Granny Parcels " - that's the RM mantra as they don't make enough money or lose money for RM .

RM group's attitude is negative - they've put somebody in charge on a £1.5 million bonus to make the PO profitable , so it'll be slash and burn , poor QofS , STP ( sod the public ) - it'll be like RM profits up , then disaster again , and vice - versa .