Saturday 1st Oct 2016 - Logistics Manager

Royal Mail challenges parcels market with Christmas price cut

Royal Mail has thrown down a challenge to its competitors by cutting the price for its small parcel product in the run up to Christmas. From 20th October, customers will be able to send bigger parcels for £2.80 – saving up to £1 per delivery.

It has combined the maximum dimensions for its previous wide and deep small parcels to give a maximum size of 45cm by 35cm by 16cm and a maximum weight of two kilos.

Royal Mail’s price cut has got the attention of its competitors. A spokesperson for Yodel said: “As with all our services we continually review the market and any changes to our YodelDirect proposition will be announced in due course.”

The promotion runs until 18th January.

Royal Mail is planning to open eight dedicated sort centres for Christmas, as well a recruiting 21,000 temporary staff and brining in 7,000 extra vehicles.

It will also be keeping customer service points open later in the evenings and on Sundays.

Nick Landon, managing director of Royal Mail Parcels, said: “To launch the new small parcel format we are introducing a festive price promotion that will benefit customers sending Christmas presents to friends and relatives, marketplace sellers and smaller businesses selling gifts online.”