Small business owners in Wales are expressing concern over the reliability of current postal services in response to proposed delivery reductions by Royal Mail. Ofcom, the UK postal service regulator, has cited the need to reduce delivery days to cope with a decline in letter volumes, the service’s mainstay. Ofcom has proposed two options to reform the service. The first would mean a three-day turnaround for letters and a next-day delivery service for urgent items. The second would reduce delivery days from six to either five or three.
Business owners are worried about the proposed reduction in services, with one, Ben Cottam of the Federation of Small Businesses in Wales, stating rural areas are disproportionately affected by such reductions. The FSB found that a quarter of Welsh businesses view the Royal Mail’s six-day service as “essential.” Service obligations on the Royal Mail allow it to operate beyond urban areas where commercial operators would find it hard to provide an alternative service.
The reduction in services has caused fears among small business owners who rely heavily on the postal service. Sandra Jervis, owner of Creative Cove in Ceredigion, estimated the unpredictability of postal services during strike action cost her approximately £3,000 ($4,139) in lost sales. Jervis fears the proposed new services may cause habits to change permanently, leading to lost sales. The Vanilla Valley, a cake supplies company, which sends thousands of letters monthly, cautioned any service reductions could negatively affect customer purchases.
The Royal Mail’s Chief Executive, Martin Seidenberg, cited sub-standard action taken by the UK government and Ofcom as a contributing factor to the current situation. He highlighted the rapid transformation of postal services abroad, with the UK lagging behind, and said reform was needed to protect the service’s future. The UK government has previously stated that it does not support the idea of scrapping postal deliveries on Saturdays and requested Royal Mail ups its game
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