Tide turning on Royal Mail

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Management
Written by Roberta Murray   
Monday, 26 October 2009

The Royal Mail strike is doing untold damage to its reputation as rivals slip into the opening void.

The Royal Mail strike will ultimately see more business move away to smaller and hungrier competitors says e-retail representative group IMRG.

Home Delivery Network (HDN), myHermes and Useyourlocal.com are all said to be benefiting from the strikes.

IMRG's Andrew Starkey said, "Royal Mail traditionally loses some business after strikes," he said. "It will be more this time because of the new services coming on line. The union is trying to preserve jobs but it will only lose more."

IMRG (Interactive Media in Retail Group), a community of e-retailers including Amazon, Tesco and other big names, suggests that 60% of them have full contingency measures to safeguard delivery of packets and parcels.

The Royal Mail strike is not only handing business to smaller rivals, but larger players are also set to benefit.

TNT, DHL and DX are also expect to win permanent customers as a result of the disruption, although they say much depends on how long the strikes over pay and modernisation last.

 

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