Royal Mail is offering free parcel collection as it celebrates “astonishing” turnaround in fortunes

Royal Mail will waive parcel pickup charges until May offering customers free collection of up to five packages a day in a bid to boost its new doorstep collection service.

‘Parcels Collect’, Royal Mail’s new collection service launched in October 2020, allows customers to have packages collected from their doorstep for a charge of 72p, or 60p for returns.

The new service, which has proven wildly popular during lockdown, is now being offered for free in an effort to persuade even more people to use the service.

Royal Mail’s postmen and postwomen will now collect up to five parcels a day from customers’ doors or nominated safe place as long as they have already paid for postage and labelled their items.

“The promotion is an opportunity for all consumers across the UK to try out this service free,” chief commercial officer at Royal Mail Nick Landon said.

“Parcel Collect is part of our commitment to continuously make our services more convenient as we re-invent the way we deliver to and from our customers.”

READ MORE: Royal Mail to begin delivering on Sundays for the first time in 500 years amid ecommerce boom

It comes as Royal Mail celebrates an “astonishing reversal of fortunes” thanks to the online retail boom seeing profits more than double.

This morning it announced that it will be paying investors a dividend for the first time since listing in 2013 as it predicted operating profits will more than double to £700 million during the year ending March.

Richard Hunter, head of markets at Interactive Investor, believes better than expected letter volumes during lockdown and growth in its General Logistics Systems (GLS) business helped the business perform well above expectations.

“On these estimates, GLS is likely to contribute half of adjusted operating profit this year, with a comfortable profit margin of 8.7 per cent, and with the aim of increasing free cash flow to €1bn and operating profit to €500m by 2025,” he said.

Earlier this month it announced plans to begin delivering parcels on Sunday for the first time since 1516 as it scrambled to meet demand amid the ongoing online shopping boom.

During lockdown Royal Mail said it has “processed unprecedented parcel volumes”, breaking records by delivering nearly 500 million parcels in the last quarter of 2020.

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Delivery / Supply Chain

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