A report by Royal Mail Group (LON:RMG) forecasts that deliveries of goods on subscription are set to double in value to £1 billion by 2022, The Times has reported. The news comes after the privatised postal operator recently launched a trial of the UK’s first-ever parcel postboxes.
Royal Mail’s share price has inched higher in today’s session, having added 0.13 percent to 468.20p as of 14:36 BST. The advance is largely in line with gains in the broader UK market, with the benchmark FTSE 100 index currently standing 0.07 percent higher at 7,282.66 points. The group’s shares have added just under a quarter to their value over the past year, as compared with about a 1.4-percent dip in the Footsie.
Subscription deliveries prospects
The Times revealed today that a Royal Mail report predicted a boom in the number of subscription box deliveries, which will include those for male grooming products reaching two million in the coming years. A survey of 2,000 adults found that one in four consumers are already signed up to a subscription and they are especially popular among under-35s.
A spokesman for the postal operator further told the newspaper that while the boom in subscription box services has been driven largely by start-ups, its report indicated that other British businesses were keen get involved.
“This forecast of further growth offers an opportunity for existing businesses and budding entrepreneurs to get out there and offer their own services,” the spokesman pointed out.
Analysts on Royal Mail
The 16 analysts offering 12-month price targets for Royal Mail for the Financial Times have a median target of 500.00p on the shares, with a high estimate of 630.00p and a low estimate of 400.00p. As of September 7, the consensus forecast amongst 17 polled investment analysts covering the privatised postal operator advises investors to hold their position in the company.