Regulator warns Royal Mail to improve deliveries; Bad weather affects Primark sales – live updates on business operations

Ofcom, the UK’s communications regulator, has called for Royal Mail to improve its delivery performance following multiple breaches of quality of service obligations in recent years. Ofcom proposes changes to Royal Mail’s second-class letter service, suggesting that the company should no longer deliver second-class letters with a 2nd class stamp on Saturdays. This move would allow Royal Mail to make substantial efficiency savings and focus on growth areas like parcels. The regulator believes that most letters are not urgent and that a next-day service is only needed for occasional urgent letters or cards. Royal Mail has previously requested to reduce second-class deliveries to only two or three days a week, a move that would result in significant cost savings and job cuts. Ofcom is currently investigating Royal Mail’s failure to meet its annual delivery targets and emphasizes the need for the company to invest in its network, improve efficiency, and enhance service levels. The proposal is part of Ofcom’s review of the universal postal service obligation, aiming to ensure the best outcome for consumers while maintaining a financially sustainable service. Royal Mail’s parent company supports the proposed changes, stating that the Universal Service must evolve to reflect the decline in letter volumes and meet consumer needs. The proposal aligns with demands from Citizens Advice for reforms to the Universal Service Obligation that prioritize consumer protection over cost savings. Additionally, Associated British Foods reports a decline in like-for-like sales at its Primark stores due to challenging weather conditions, while Currys sees growth in sales driven by interest in AI computing products.

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