Royal Mail share price: Postal group secures new contract with ASOS
Royal Mail (LON:RMG) has secured a new contract to deliver orders for ASOS (LON:ASC) and it has also extended its capacity to handle the 25 percent of fashion brand’s customer returns it doesn’t already deliver.
Royal Mail currently handles around 75 percent of ASOS customer returns through its 11,500 Post Office outlets. With the latest contract, announced in a statement today, the British postal group is increasing its capacity by one million items so the network can carry up to five million customer return parcels per year. Royal Mail said that the new contract and extension of the existing 15-year relationship were driven by its “ability to handle significant increases in volume during peak periods”.
Royal Mail added in its statement today that it had conducted research, which had revealed that nearly one in six consumers did virtually all their shopping online. It also found that the returns service offered by a retailer is increasingly a point of differentiation.
Nick Landon, managing director of Royal Mail Parcels, said today: “Royal Mail is committed to supporting the growth of e-commerce in the UK by continually developing and improving the services we offer to retailers and their customers. We are delighted to have extended this important relationship with ASOS.”
Royal Mail’s shares have been trading in negative territory so far today. As of 13:25 GMT, the blue-chip company was changing hands at 440.80p, 1.01 percent down intraday. The stock was underperforming the FTSE 100 benchmark index, which meanwhile stood just 0.17 percent lower at 6,350.89 points.
As of 13:40 GMT, Tuesday, 03 November, Royal Mail share price is 440.95p.