We solidified our position in the market through an improvement in the mix and quality of parcels we process. Additional pricing and efficiency moves have enabled us to offset the lower parcel volume.
Parcels Parcel volumes in the UK declined in the year, reflecting the easing back of Covid led online focused buying. According to Ofcom,* total parcel volumes decreased by 5.7% to 3.8 billion items in 2021-22, compared with the 47% growth recorded in 2020-21. Domestic parcel volumes fell by 0.8% year-on-year to 3.4 billion items (compared to 53% rise in prior year). Next day (D+1) delivery items made up 65% of measured domestic parcel volumes during 2021-22, compared with nearly 60% the previous year.* Total parcel volumes across all UK postal operators decreased by c.6% to 3.82 billion items with domestic volumes declining slightly (by c.1%).* Against the background of a downturn in overall parcel volumes, we continued to invest in our operations with the appointment of our first Managing Director of Whistl Parcels to focus on large organisations and core strategic customers using our national network. We solidified our position in the market through an improvement in the mix and quality of parcels we process. Additional pricing and efficiency moves have enabled us to offset the lower parcel volume. We have won significant contracts in the horticulture sector with You Garden and Sarah Raven, joining other big brands including TM Morgan. Our Parcelhub brand focusses on medium-sized organisations and large SMEs with a more regionalised approach using onsite local collections and consolidated volumes. The Leicester site, opened in 2021, is performing well and we added sites in Birmingham and Leeds to the portfolio.
Whistl operates in a regulated environment with Ofcom as the Postal Sector regulator. In July 2022, Ofcom published its review of postal regulation which introduced some minor changes to the existing regulatory framework: including strengthening the monitoring of sustainability and efficiency of Royal Mail and introducing new consumer protections in parcel services. It has decided that the overall regulatory framework for postal services remains appropriate for the next five years and so Whistl is free to continue its well-established activities in a stable regulatory environment. Despite the Supreme Court ruling that Royal Mail has no grounds to appeal an Ofcom fine, which it has now paid, there has been no resolution for Whistl to the 2014 complaint that Royal Mail had abused its dominant position in connection with Whistl’s end-to-end business. Whistl continues to pursue its damages claim for this anti-competitive behaviour. Whistl ensures that it has frequent dialogue and engagement with Ofcom, Royal Mail, and the Mail Competition Forum and has quarterly engagement with the Business and Trade (BAT) Committee and the Wholesale Access Group to ensure that its own views on regulatory and market developments are heard and help shape the market.
OUR PARCELHUB BRAND WAS BOTH REFRESHED AND ROLLED OUT MORE WIDELY
The Parcelhub visual brand identity underwent a refresh in the year to coincide with the first phase in the rollout of its electric collection fleet and a more cohesive look aligned to the Whistl brand. We have developed and launched Wismo (Where is my order) software that automates the process between collection and delivery, providing automatic real time updates and reconciliation. The reduction in human interaction has enabled speedier reconciliation of customer enquiries. During the year, we became the first parcel and delivery consolidator to become integrated as an Amazon delivery carrier. It allows our customers who trade through Amazon to select us as their carrier, enabling us to support customers on one of the largest online marketplace websites. Additionally, we can now offer our customers, Yodel’s new Xpect Mini and Medium 2-hour delivery window services.
* Annual Monitoring Update for Postal Services Financial Year 2021-22
Whistl Annual Report 2022
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