UK based postal service company Royal Mail said that it is on its way to meet its cost reduction target and has delivered more parcels than expected in Britain. With more parcels to deliver, it has eased concerns over the increasing competition in the market.
Royal Mail said that it has delivered more than 130 million parcels in December 2015 alone which has indicated that Christmas saw a strong trade figure. The figure was up by 6% compared to the previous year. Due to the changes in technology, the number of letters sent have reduced but this has balanced with the number of parcels that are sent due to online sales.
Moya Greene, the Canadian chief executive of the company said, “We remain on track to deliver at least a 1 percent reduction in underlying operating costs before transformation costs … for the full year”. Royal Mail is now focusing on being cost effective and is also concentrating on improving efficiency. Amazon is its key customer and has began delivering parcels through its own network.
On the other hand Royal Mail has said that it has seen a strong performance in its European parcels arm GLS and the volumes have gone up by 11 percent with the revenues that have climbed to 10 percent.
Photo Credits: telegraph