Royal Mail share price: Group launches new service for international parcels

Postal operator aims to give overseas customers of UK retailers more convenient tracking

Royal Mail share price: Group launches new service for international parcels

Royal Mail Group (LON:RMG) has launched tracked email notifications for international parcels, the company has said. The move comes at a challenging time for the privatised postal operator which recently dropped out of the FTSE 100 index and continues to struggle to reach an agreement with a trade union over pensions.

Royal Mail’s share price has jumped in London in today’s session, having added 1.37 percent to 378.00p as of 13:15 BST, outperforming the broader UK market, with the mid-cap FTSE 250 index currently standing 0.45 percent higher at 19,524.68 points. The group’s shares have lost more than 27 percent of their value over the past year, and are down by some 18 percent in the year-to-date.

Royal Mail announced in a statement today that it had launched tracked email notifications in an effort to give overseas customers more convenient parcel tracking. The new service is a free add on with all Royal Mail International Tracked products, and will initially be available to customers who have a business account with the postal operator. Under the initiative, the company will further provide retailers with a link that they can embed into an email to their overseas customers. 

The move comes amid an ongoing row with the Communication Workers Union over the group’s plans to replace its defined benefit pension scheme with an alternative plan.  The union’s members are currently voting on whether to take industrial action which could potentially disrupt deliveries across the UK ahead of the key Christmas period.

The 15 analysts offering 12-month price targets for Royal Mail for the Financial Times have a median target of 450.00p, with a high estimate of 590.00p and a low estimate of 320.00p. As of September 15, the consensus forecast amongst 17 polled investment analysts covering the privatised postal operator advises investors to hold their position in the company.

As of 14:06 BST, Tuesday, 19 September, Royal Mail share price is 377.80p.

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