Royal Mail has warned that its business is set to be worse than expected in the next financial year amid business uncertainty. A large part of this has been blamed on the dramatic fall in the use of letters.
Specifically a fall in the use of the letters O, S, T, I, C and E from the Post Office logo. The newly renamed ‘P Off’ was meant to save money in signage and printing costs but instead appears to have discouraged customers from entering branches and seen increased complaints over lost letters.
Online sales have risen, and Royal Mail handled 164 million parcels in December alone – but the fall in us regular Joe’s sending letters means a fall in profits.
Royal Mail’s Head of Parcels was quick to point out that his department had exceeded expectations – and that blame should really lay with the Head of Stamps.
Otherwise known as Her Majesty the Queen.
Ed Monk, associate director from Fidelity Personal Investing’s share dealing service, said: “There’s trouble in the post at Royal Mail.”
Luckily, Royal Mail have a new plan to boost investments and maintain profits – they’ll soon be selling both first and second class shares.
First Class shares will be a guaranteed payment made directly into Shareholder’s bank accounts whereas riskier Second Class Share payments will be a cheque sent through the post, many of which are expected to become lost and so never be cashed.