Bira has warned that a new Royal Mail cap on daily business collections could leave independent retailers struggling to fulfil orders during the crucial Christmas trading period.
Royal Mail has informed businesses that during November and December, daily business collection capacity will be limited to a maximum of three times their usual collection volume.
However, Bira said many independent retailers experience a far greater seasonal surge, with some seeing order volumes increase by 15 to 20 times their normal levels between mid-November and mid-December.
Andrew Goodacre, CEO of Bira, said the cap risks penalising smaller retailers at the busiest time of the year. “This cap comes at exactly the wrong time for small retailers,” he says. “November and December are the months when independent businesses do the bulk of their annual trade, and many depend on being able to scale up their shipping to meet that demand.
“A fixed multiple on collection capacity does not reflect how seasonal trading actually works for small businesses, and it risks leaving retailers unable to fulfil the orders they have worked all year to win.”
Goodacre is asking Royal Mail bosses to reconsider the policy and adopt a more flexible approach for smaller businesses during the festive trading season.
“We would urge them to look again at how this cap will affect smaller senders in particular, and to work with the small business community to find a more flexible approach during the peak trading period,” he adds.