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Royal Mail turns post offices into pick-up joints

Consignia, formerly Royal Mail, is to open its 18,000 branches as pick-up points for e-tailers and will not charge them by the individual package.

By Deborah Schofield

Published: 9 May 2001 16:55 BST

Instead, e-tailers will pay a small flat fee to sign up for the scheme and sub-post offices will also be paid. From July, customers will be able to specify local post offices to deliver direct to their homes, or alternatively collect their purchase from the sub post office, to avoid the problems of waiting for deliveries.

James Eady, Consignia spokesman, said: "After trials since late last autumn, we have decided to make the service available throughout the UK. It will provide another delivery option to our extensive portfolio."

Final details of the service and charges have yet to be worked out, according to Eady, and no companies have yet signed on the dotted line, although discussions with a number of them were progressing.

Consignia believes it will make its cash out of the savings on failed deliveries by its two subsidiaries, Parcelforce and Special Delivery. Both of these are increasingly used for delivery of CDs, computer spares and other valuable goods requiring a signature on delivery.

The delivery company estimates that eight per cent of home shopping orders are placed through the internet or interactive television. The slow take-up of both has been blamed on worries about delivery.

The delivery company hopes that the additional traffic to sub-post offices will generate business for them.

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