Royal Mail has reported a performance shortfall in its latest quarterly results, with nearly 25% of first class mail delivered late. For the three months ending June 29, the company disclosed that it managed to deliver 75.9% of first class mail within one working day, a slight increase from 74.2% in the previous quarter, but still significantly below the 93% target set by the regulator, Ofcom. In terms of second class mail, Royal Mail reported that 89.3% was delivered within three working days, again falling short of Ofcom’s target of 98.5%.
These updates follow the completion of a £3.6 billion takeover of International Distribution Services (IDS) by the group controlled by Daniel Křetínský, a Czech billionaire. Křetínský has interests in various sectors, including energy and retail, and owns stakes in Sainsbury’s and West Ham United.
In the same report, Royal Mail noted it had achieved a 97% delivery rate for first class mail within three days. Over the past two years, the company has incurred over £16 million in fines for failing to meet delivery targets, prompting Ofcom to initiate an investigation due to ongoing performance issues.
Jamie Stephenson, interim chief operating officer, emphasized the importance of timely deliveries and stated that the company is implementing measures to improve service reliability. Amid these challenges, Ofcom has approved the reduction of delivery requirements, permitting Royal Mail to cease Saturday deliveries of second class letters and operate on alternate weekdays from Monday to Friday. The regulator has also lowered delivery targets for first class post to 90% and second class to 95%, effective from April next year.
Concerns remain regarding the impact of these changes on service quality, with stakeholders questioning whether they will lead to improvements for consumers.
Source: https://www.theguardian.com/business/2025/aug/22/royal-mail-missing-delivery-targets-sale-kretinsky-ep-group