Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
What we can all be sure about is that if and when any alterations are made to the scope of the USO it won’t allow IDS/RM to make any more profit from handling USO traffic than they can under the existing specification. That is because the entire logic of regulation is about ensuring a universal service to consumers at affordable prices (i.e. at prices which allow an economically efficient operator to make a margin no greater than 10%.
It would seem the fine was originally £8m but was reduced by 30% because IDS did not contest the finding.
It would be interesting to know what criteria Ofcom use to determine the size of a fine. The last one in 2019 was £1.5m, so this is very large in comparison. Have to say I’m surprised they seem to have accepted an argument for industrial action to be an adjustable factor. Industrial relations are completely within the control of the company and this seems to set a regulatory precedent allowing IDS to manage them badly.
Not envisaging good historical numbers, but the future prognosis is what really matters.
The market conditions are challenging, the forward intent needs to be coherent.
@Newdealz
“ @Derek - you cant compare normal service to a black swan event like the pandemic! go back and look at the stats for 2019 and 2023 (the first full year of no lockdowns) It paints a different picture”
The stats show that artificial surge in volume caused by the pandemic has flattened out and the higher new normal volume has flatlined along with retail in general. In the mean time carrier capacity has increased to respond to the prevailing volume so comparing 2019 and 2023 will lead you down a blind alley.
@Newdealz I’m not sure the stats back up your assertion. According to ONS data internet retail growth has largely flat lined after surging at the start of the pandemic, and if anything is falling as a % of total retail spend.
https://www.ons.gov.uk/file?uri=/businessindustryandtrade/retailindustry/datasets/retailsalesindexinternetsales/current/internetreferencetables.xlsx
@Newdealz as I said in an earlier post I surprised it has taken POL so long to exercise this contractual freedom.
It is however far from being the case that there isn’t a link between RM and POL. The Post Office network remains by far the most important retail interface Royal Mail has with consumers and SMEs. If they don’t offer RM24 and 48 through this channel Evri and DPD will take large lumps of some of RM’s most profitable parcel traffic away.
@Mr Peevly why would the fact that T24 and 48 attract VAT prevent Post Office Ltd from selling these services on behalf of Royal Mail ?
POL are clearly able to sell vatable services on behalf of Evri and DPD.
@Newdeal, I was referring to the margins Royal Mail makes after costs including commissions paid to Post Office Ltd.
Having worked in marketing divisions in both organisations I can honestly say the relationship between them at a commercial level was generally abysmal. Royal Mail generally managed the relationship through people who were clueless about retail and had a tendency to impose product propositions on Post Office Ltd that didn’t work particularly well for their customers and POL always took far too long to deploy changes that would have helped both organisations keep up with competitors.
The margins on T24 and 48 parcels handled for the big online platforms are now were near those on the consumer and SME postings made over the counter. It is easy to be busy and unprofitable in the parcels business.
It’s quite surprising how long it has taken since the split up of Royal Mail Group for Post Office to behave like a normal retailer by giving their customers some choice of carrier. The fact that you still can’t buy Tracked 24 and 48 services in a Post Office branch leaves Royal Mail a risk of losing a lot of retail volume at risk if a significant number of branches are selling Evri and DPD services.
Are their many more convoluted ownership structures around ?
“Columbia Management Investment Advisers, LLC is wholly owned by Ameriprise Financial, Inc.Threadneedle Asset Management Limited is wholly owned by TC Financing Limited, which is itself wholly owned by Threadneedle Asset Management Holdings Limited, which is itself wholly owned by TAM UK Holdings Limited, which is itself wholly owned by Threadneedle Holdings Limited, which is itself wholly owned by TAM UK International Holdings Limited, which is itself wholly owned by Ameriprise Financial, Inc.Columbia Threadneedle Management Limited is wholly owned by Columbia Threadneedle Holdings Limited, which is wholly owned by Columbia Threadneedle Group (Management) Limited, which is wholly owned by Columbia Threadneedle Group (Holdings) Limited, which is wholly owned by Columbia Threadneedle AM (Holdings) Plc, which is wholly owned by Columbia Threadneedle (Europe) Limited, which is wholly owned by Columbia Threadneedle Investments UK International Limited, which is wholly owned by Ameriprise Financial, Inc.“
SimX the article talks about the ticker name of Royal Mail changing to IDS “last month”.
That change took place on 5 October 2022, so the article is from November 2022.
I’m probably being a bit dense here but if 70k shares were “bought” then they were also sold and if the trade went through at 5p below the share price at the time then surely that is because who ever was selling them was prepared to accept that price in order for the trade to happen. Why would any of that represent “manipulation” ?
That was total gibberish so here’s another try !
“Often the positive volume growth reports are down to Amazon making local changes to their last mile delivery arrangements and are counter balanced by work being withdrawn elsewhere. It is however encouraging that Royal Mail seems to be handling more next day delivery parcels for Amazon than it has done in recent years.
If Royal Mail is becoming more competitive and capable of building market share in the next day parcels space that will be a real positive
Often this positive volume growth reports are down to Amazon making local changes to their last mile delivery arrangements and aren’t balanced by work being withdrawn elsewhere. It is however encouraging that Royal Mail seems to be handling more next day delivery parcels for Amazon that has done in recent years.
If Royal Mail is becoming more competitive and capable of building market share in the next day parcels space that will be a real positive.
Redceo “We seem to be fortunate with Martin as Group CEO of IDS. What we now need is for the appointment of individuals to GLS and Royal Mail that have the ability to create a team from the various elements.”
Don’t you think Dr Pfaff fits the bill at GLS ?
https://gls-group.eu/GROUP/en/Karl%20Pfaff%20CEO%20GLS%20Group/
Newdealz, the chance of lockers attracting 50% of U.K. delivered parcel volume in your or my life is lower than that of me wanting to go for a drink in any Wetherspoons, let alone one in Aldershot. i.e It won’t happen.
But as I have said, although I doubt think it is game changer, I agree it is a growth area that RM should have a position in. The easiest way to do that is for them to maximise the potential of their callers office network (instead of minimising it) and doing deals with carrier neutral locker operators and retailers to deliver to their infrastructure.
JB there is an obvious connection between time poor commuters who are away from home 5 days a week finding a pick up, drop off locker at a rail station a useful service. Thence the reason DHL are expanding there. The reason it didn’t work for Doddle in the U.K. is because there isn’t enough demand paying enough to warrant dedicated manned parcel shops anywhere, even in the most obvious locations.
A very significant point of online shopping is precisely to avoid having to go to a food or retail park. No one “Has” to go there anymore. Hopefully in the fullness of time this will see the demise of out of town shopping centres, the associated traffic they generate, and the blight they inflict on town centres.
Why are DHL installing packstations in rail stations across Germany if rail stations are ridiculous locations for PUDO services ?
https://postandparcel.info/147505/news/e-commerce/dpdhl-to-launch-800-packstations-at-german-train-stations/