Our businesses

We have two main businesses: UK Parcels, International & Letters (UKPIL) and General Logistics Systems (GLS)

In the UK, we operate under the Royal Mail and Parcelforce Worldwide brands. Outside the UK, GLS is one of the largest ground-based, deferred parcel delivery networks in Europe. It provides geographical diversification for our earnings and is a growth engine for the Group. GLS is expanding its presence in European markets and through focused and targeted acquisitions to capture higher growth segments outside Europe.

 

UK Parcels, International & Letters (UKPIL)

In the UK, we operate primarily under the Royal Mail brand, as well as under Parcelforce Worldwide. We are the UK’s pre-eminent delivery company. Royal Mail’s network is unparalleled in the UK in its scale and scope. It supports services for the collection, sorting and delivery of parcels and letters by Royal Mail.

As the UK’s sole designated Universal Service Provider, we’re proud to deliver a ‘one price goes anywhere’ service on a range of letters and parcels. These are delivered to over 30 million addresses (including 1.3 million businesses) across the country, six days a week. The Universal Service is vital for economic growth. It’s the physical fulfilment arm of the digital economy and is crucial to the UK’s economic future.

We’re adapting our UK operation to maintain our position as the leading UK player in letters and parcels.

In the most competitive parcels market in Europe, and against a backdrop of structural decline in addressed letter volumes, we continue to roll out new services and products. We’re adapting our UK operation to maintain our position as the leading UK player in letters and parcels. For example, using our PDA technology, we’ve rolled out notifications of estimated delivery windows for our Tracked products.

Letters are very important to us. They account for around 55 per cent of our UK revenue. Against a backdrop of a structural decline in addressed letter volumes, we continue to innovate and promote the value of mail through a range of initiatives.

We make the seventh largest contribution of any UK company to the UK economy. One in every 194 jobs in the UK is provided by Royal Mail. Find out more about Royal Mail’s contribution to the UK economy:

>CEBR - Royal Mail's contribution to the UK economy (PDF)

 

 

 

GLS

GLS is a force for growth. It’s one of the largest, ground-based deferred parcel networks in continental Europe. It covers 41 countries and nation-states in Europe and, following recent acquisitions, eight states in the western US and in Canada with a focus on the provinces of Ontario and Quebec. It has a replicable and scalable business model and key strengths in business-to-business and business-to-consumer markets.

As our gateway to continental Europe, the western US and Canada, GLS is a strategically important part of the Group.

 

As our gateway to continental Europe, the western US and Canada, GLS is a strategically important part of the Group. It offers geographic diversification for our earnings and access to around 270,000 customers.

GLS accounts for around a third of the Group’s profits. It has successfully expanded several new B2C services across Europe: FlexDeliveryService, ShopReturnService and ShopDeliveryService. They’ve helped win new contracts and more business from existing customers. GLS has also introduced a range of IT systems to improve the parcel process, such as scanning devices and customer tracking systems.