Britain’s postal service Royal Mail on track after strong Christmas

Britain’s postal service, the Royal Mail yesterday said it was on track to meet its cost reduction target and delivered more parcels than expected in the UK over the Christmas period, easing concerns over the intense competition facing the former monopoly.

In a trading update, Royal Mail said it handled 130m parcels in December alone, reflecting strong Christmas trading, up 6% from the previous year, a bigger volume increase than recorded by any of its competitors.

Technology changes mean the number of letters being sent is in decline but this is balanced by a growing parcel market driven by online sales.