14 July 2020
myroyalmail is updated daily

Our strategy

Our ambition is to build a parcels-led, more balanced, more diversified international business.

In 2019, we set out our five-year strategic plan. We have great strengths - our people, scale, brand and network. Changes in communication and commerce - driven by the Internet - mean that we are changing too. Our ambition is to build a parcels-led, more balanced, more diversified international business.  

We are focusing on three new strategic priorities:

  • 'Turnaround and grow’ in the UK
  • ‘Scale up and grow’ GLS 
  • Enhancing our cross-border proposition

Together, these will help us build a Royal Mail for the future.

Turnaround and grow in the UK

At the heart of our strategy is a UK transformation plan. We will invest around £1.8 billion over five years to become a more efficient and parcels-led operation. This brings UK investment capital expenditure to around £4 billion since 2013. Key elements of our plan:

Extending our network to handle small and larger parcels more efficiently:

  • We will introduce a second daily delivery for larger items and parcels purchased online from retailers the evening before. This will be fully operational by 2023.
  • Three new fully-automated parcel hubs will be built to handle next day, large and smaller Tracked parcels. A separate van delivery for these items will be routed through potentially 200-300 of our large delivery offices.
  • Our existing combined daily delivery of letters and small parcels will continue as is.

A renewed focus on productivity and operational excellence through:

  • Improving our existing processes;
  • Embedding new digitally-enabled work tools that allow us to better resource to workload and ensure we are paid for everything we do;
  • A major increase in parcel sorting automation. 

New initiatives for customers and e-retailers, including:  

  • Introducing 1,400 parcel postboxes, offering more posting options for small businesses and marketplace sellers;
  • Collecting returns from consumers at home;
  • Offering more inflight redirections for individual parcels. 

Click here to read more about our future strategy on the Royal Mail Group website.