- Strategy is working, with progress on all fronts
- Parcels account for almost half our revenues
- Well placed to benefit from continued growth in online retailing
- Marketing mail business made £1.1 billion Our strategy consists of the following three parts: 1. Be brilliant at the basics 2. Build a commercial future 3. Drive profitable growth
Be brilliant at the basics
We must modernise our operations to become more efficient and customer-focused. We must put the customer at the heart of everything we do. And, we must offer the right products at the right prices.
Build a commercial future
We've made significant progress on gaining the freedom to compete on a level playing field and earn a commercial rate of return for the job we do. The new regulatory approach announced by Ofcom is a crucial first step. Around 80% of our revenue had been subject to price control. Now, we are able to set prices that account for just over 90% of Royal Mail's revenue.
Drive profitable growth
The mail market is changing and we have to change with it. We must continue to respond to changing customer needs, diversifying the business to take advantage of profitable new revenue streams. At the forefront of our plans to counter the decline in our traditional letters is expanding our parcels and marketing mail businesses.