Royal Mail misses delivery targets again but hails 'encouraging' signs
The struggling firm said it had improved its performance but missed regulator-set delivery targets.
Royal Mail has once more fallen short of its delivery targets for first and second class post, yet the company claims it is making strides towards its objectives as part of its ongoing turnaround plan. Between March and June, Royal Mail delivered 85% of first class deliveries the next day, up from 76% in the same timeframe the previous year, but still falling short of Ofcom's 90% benchmark.
For second class mail, 91% of letters were delivered within three days, an improvement from the prior year, but still below Ofcom's 95% goal. The company's management sees these results as encouraging, indicating that their efforts to enhance the service are bearing fruit. Royal Mail, controlled by International Distribution Services (IDS), has faced challenges due to increased competition, a decline in letter-sending habits, and fines from the regulator for missing targets in recent years.
However, compared to the same period last year, the percentage of first class mail delivered the next day has increased significantly, while the portion of second class mail delivered within three days has improved slightly. Chief operating officer Jamie Stephenson stated that these outcomes are promising and demonstrate that their initiatives to enhance the service are making a difference.
Stephenson noted that there is still work to be done, highlighting a £500 million investment plan to improve the firm over the next five years, including a pledge to meet Ofcom's delivery targets by May 2027. The postal service has been under scrutiny by politicians and the public for years due to the slowness of its letter delivery.
Currently, it is undergoing an Ofcom investigation for the second consecutive year for failing to meet its delivery targets. The regulator imposed a record £21 million fine on Royal Mail in October last year for missing targets in 2024-25. Recent protests by postal workers in the UK revealed that staff were being asked to move or hide mail by senior executives to make it seem like targets were being met.
Royal Mail has apologized to Gloucester residents, admitting that their service was totally unacceptable. Most recently, residents in Worcestershire complained about weeks-long delays for important mail, with some missing hospital appointments. The company has set a target to meet Ofcom's targets by May 2027 as part of its turnaround plan, which is expected to cost around £500 million in the next five years.
Stephenson emphasized in a statement that there is still more to accomplish and that the progress is due to the ongoing hard work of their frontline staff, even during extreme heat. IDS was acquired by Czech billionaire Daniel Kretinsky in 2025.
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