Financial Times FT.com

Couriers win converts as strikes continue

By Maija Palmer

Published: October 29 2009 23:00 | Last updated: October 29 2009 23:00

A second week of national postal strikes has seen businesses handing over even more of their deliveries to courier services. Many are reluctant to abandon Royal Mail completely, however, saying that few alternatives can compete with it for cost, especially on small items such as books and CDs. For example, DSG International, which owns Dixons, used Royal Mail to send out computer disks containing Microsoft’s new Windows 7 operating software, which had its long-awaited launch last week. It worked with Microsoft, however, to send out the disks a few days before the official launch date, to avoid the strike.

If the strikes continue, however, businesses say they may have to consider permanent adjustments to their delivery models. Courier companies, which saw sharp increases in business last week are confident they have won many customers over for good. However, there is great underlying concern across the board that prolonged mail disruptions will simply put people off shopping online.

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