Traditional mail business continues to decline
The drop in traditional letters and the post office is accelerating
The distribution of letters and postcards represented 71% of the public operator’s income in 1991. Then, with the arrival of the digital revolution with the email boxes the letter lost ground very easily and very quickly.
The volumes of mail and postcards continue to fall freely. To be precise the business dropped by 7.3% last year, which represents only 28% of sales for the company. Philippe Wahl, CEO of La Poste, said it is “the biggest decline in a year” on the occasion of the publication of the dramatic results.
Companies and public administrations communicate more and more through the Internet. This process specifically affected the banking, public and telephone sectors last year, as well as the directed advertising by mail.
In view of the situation, the strategy of the head of La Poste is to develop other businesses and a new model to reduce the vulnerability of traditional mail, which will not represent more than 20% of its income by the end of 2020.
Obviously, the business has to look for diversification and to drive the transformation of the company by strengthening its other main services, parcel service and financial services too. The postal entity is expected to launch its cheap mobile bank Ma French Bank in the summer.
L.Sáenz
Source: NotiUlti
