Royal Mail collection cap risks hitting small retailers at the busiest time of year, says Bira
Posted on in Business News , Cycles News
ACT parent company Bira has warned that a new cap on Royal Mail's daily business collection capacity could cause serious problems for small retailers during the most important trading period of the year.
Royal Mail has written to UK businesses confirming that during November and December, daily business collection capacity will be limited to a maximum of three times a business's usual collection volume.
For many small retailers, demand during the run-up to Christmas can spike far beyond that multiple, with some businesses reporting order volumes fifteen to twenty times higher than normal during the mid-November to mid-December period.
Andrew Goodacre, CEO of Bira, said: "This cap comes at exactly the wrong time for small retailers. November and December are the months when independent businesses do the bulk of their annual trade, and many depend on being able to scale up their shipping to meet that demand. A fixed multiple on collection capacity does not reflect how seasonal trading actually works for small businesses, and it risks leaving retailers unable to fulfil the orders they have worked all year to win."
"We would urge Royal Mail to look again at how this cap will affect smaller senders in particular, and to work with the small business community to find a more flexible approach during the peak trading period."