Press release -
Post Office Christmas Trading Statement
UK’s largest retail network achieves strong sales performance despite challenging high street environment.
Post Office today reports its key trading figures for the peak Christmas period from 30 November to 27 December 2020. Despite the pandemic contributing to a challenging retail environment, footfall was consistent with the same period last year with over 51.3 million customer transactions during the four-week period (-0.5%). Income* increased 17% across the network.
| 30 November – 27 December | % | 2020 | 2019 |
| network income* | +17% | £66.3m | £56.7m |
Highlights
- Post Office saw an 17% increase in total network income* compared to the same period in 2019, reporting £66.3m in sales.
- The week beginning Monday 7 December was our busiest week of the year, with 15.1m customer transactions, two thirds of which were mails transactions.
- Postmaster variable remuneration increased on average by an estimated 20% compared to the same period last year.
Network availability was in line with the same period last year despite the pandemic, with 11,450 branches open, totalling over 99% of the network.
Mails and parcels services increased significantly, reflecting broader trends in e-commerce growth. Drop & Go, the Post Office’s fast-track service for businesses and online sellers sending parcels, increased sales value by 87%.
Post Office recently announced a new 11-year agreement with Royal Mail enabling customers to continue to purchase a wide range of Royal Mail products through the Post Office’s extensive branch network.
Cash and banking** services have remained resilient with small and independent businesses increasingly relying on their local Post Office to deposit their takings at a time that’s convenient for them. In the period 30 November to 27 December, thanks to the continued, widespread access to cash provided by the network, £1.56bn was deposited and £630m was withdrawn at Post Office branches, only 10% lower than the same period last year despite the varied levels of Covid-19 related restrictions during the period.
Bill payment volumes were up 27% across Post Office and Payzone during the period due to the benefit of the British Gas contract from January 2020 despite mild weather contributing to lower demand for energy top-ups.
Post Office Travel Money has seen a 69% decrease in like for like sales compared with the same period in 2019 because of pandemic related travel restrictions. However, we expect to see an uplift if travel restrictions are eased during 2021.
Commenting on Christmas trading, Post Office Chief Executive, Nick Read, said:
“After a very challenging year for much of the retail sector, I am pleased to see 17% growth in network income over the Christmas period thanks to the hard work of postmasters. The mails market, particularly for parcels, remains very strong driven by the growth in online retailing. Our physical presence has been vital across the UK, with customers enjoying the convenience, expert advice and safe hands that our postmasters offer, in addition to the invaluable support they have provided to local communities during the pandemic with 99% of the network remaining open.”
Notes to Editors
* Final figures are subject to audit.
** Note the £630m withdrawal figure in this Trading Statement excludes Post Office Card Account withdrawals and ATM withdrawals.
Categories
About the Post Office
- With over 11,500 branches, Post Office has the biggest retail network in the UK, with more branches than all the banks and building societies combined.
- Post Office is helping anyone who wants cash to get it whichever way is most convenient. Partnership with over 30 banks, building societies and credit unions means that 99% of UK bank customers can access their accounts at their Post Office.
- Cash withdrawals, deposits and balance enquiries can be made securely and conveniently over the counter at any Post Office; and the biggest investment by any organisation or company in the last decade is being made to safeguard 1,400 free-to-use ATMs across the UK.
- Post Office is simplifying its proposition for Postmasters with a focus on itscash and banking; mails and parcels; foreign exchange; andbill paymentsservices.
- Researchhas found that visits to the Post Office help drive another 400 million visitors to other shops, restaurants and local businesses equating to an estimated £1.1 billion in additional revenue for High Street businesses.
- 99.7% of the population live within three miles of a Post Office; and 4,000 branches are open seven days a week.
