The 2024 GCA Conference in Bristol welcomed Royal Mail’s Fiona Hamilton to the stage.
Fiona shared insight into Royal Mail’s modernisations plans, and the need for USO reform and for parcel growth. Fiona also outlined proposed changes to 2nd class delivery, moving to just two or three days a week (every other working day), and outlined operational readiness for Christmas. Fiona then responded to members questions from the floor. For more details on Fiona’s presentation on the day see PGBuzz
As an industry we rely heavily on Royal Mail Letters post: The consumers our industry reserves rely on Royal Mail to deliver greeting cards affordably, and on time, to their loved ones. As Ofcom highlights 42% of consumers only use Royal Mail’s Letters service to send greeting cards. In addition many GCA Members, along with small businesses across the country, rely on Royal Mail to supply B2C orders.
Members feedback from the Conference
Feedback following the Conference is clear:
- Members want to see customers’ needs being put front and centre of Royal Mail’s plans and are angry at the recent announcement of yet another 1st class stamp price increase of 22% from £1.35 to £1.65 due October 2024; this is the fifth increase in less than 3 years and represents a 74% rise over the last two years. This has led to fears that this will create decline in the usage of the Letters service, and disappointment that Royal Mail were unwilling to offer any customer testing ahead of this rise on their signature product.
- Royal Mail’s confirmation, following the recent Ofcom announcement, that the future of the 2nd class delivery service will be limited to two or three days a week, will leave customers with little idea when their greeting cards will arrive. Members are concerned that this will result in customers losing trust in the relatively affordable 2nd class stamp, with the consequence being a doom spiral of decline leading to lower usage. There is concern that this could result in Royal Mail demanding the end of an affordable 2nd class stamp in favour of a high-price, uncapped, unregulated 1st class stamp beyond the financial reach of many greeting card customers.
- There is frustration that prices keep rising, and the division of costs between Royal Mail’s monopoly on letters and its underperforming, competitive parcels service remains unclear, even though both share considerable elements of the same delivery network, particularly in more rural areas. Also that price hikes coincide with Royal Mail’s ongoing failure to meet service targets and recent news of runaway executive pay and bonuses.
- At a time when Royal Mail should prioritise improving services, they are shifting financial burdens onto their customers, especially small businesses. With Ofcom delaying its review of Royal Mail’s service standards until 2025, businesses are left in limbo. The lack of regulatory oversight enables Royal Mail to continue raising prices without addressing declining service quality, and ironically using the consequential decline in volumes as justification for further price increases.
- Frustration that there was no detail on the Royal Mail Christmas marketing campaign, particularly given we are now into the Christmas season for businesses selling in that market. Members would like to see Royal Mail being more innovative to encourage demand/early posting in the run up to Christmas; GCA members suggested again a reduced price Christmas stamp for a limited period.
Have your voice heard!
The GCA heard members concerns loud and clear, and will continue the work to protect and promote card sending.
Ultimately decisions about the Royal Mail service will be made by the new government and many of those newbie MPs don’t yet realise how much we all care about a Royal Mail that’s national, affordable and reliable.
As requested below is a letter that members can download and amend to suit their business, and send to their local MP. If you are not sure who your new MP is see Find your MP
More from our 2024 Conference!
To read more about the GCA’s 2024 Conference and AGM, and see the photos click here
Downloads
