Mail volumes recovered steadily, with growth seen for both addressed and unaddressed mail volumes. Combined with price increases, this resulted in a 6% increase in letter revenue in 2021, although volumes remained well below pre-pandemic levels.
Meanwhile, Royal Mail saw its domestic and international parcel volumes fall, in part due to a strong recovery in the UK retail sector. Through cost saving initiatives, the post was able to offset the impact of lower parcel volumes on profitability, in part through increased automation. By the end of the year, more than half of parcels were processed through automated sorting hubs. It aims to increase this share to 90% by 2023. For more details download the latest IPC Carrier Intelligence Report for Royal Mail.