Royal Mail's delivery targets may be changed due to Black Friday rush

Ofcom is considering altering the rules on delivery targets for Royal Mail (LSE: RMG.L - news) because of the impact of Black Friday.

Royal Mail is exempt from the targets in December when volumes are much higher because of Christmas but Black Friday now means there is also a peak in November.

The postal firm missed its target of delivering 93% of first class mail within one day in the last financial year but was not issued with a fine by Ofcom.

That was because of "circumstances beyond Royal Mail's control", including the surge in online deliveries around Black Friday, the US discounting day that has taken hold in the UK in recent years

Ofcom said: "We are now considering whether any changes to the rules are needed to reflect these shifting online shopping habits.

"However, Ofcom expects Royal Mail to hit the delivery targets it is set."

It did not say what the changes might be.

But possible options might include: extending the December exemption into November; shifting the whole month-long window back so that it starts and finishes a bit earlier; or setting targets in a different way.

Royal Mail targets include the 93% benchmark for next-day first class delivery and for 98.5% of second class mail to be delivered within three working days.

The proposal by Ofcom comes days after it was announced that stamp prices were to increase by 1p or 2p from later this month.

It was announced as the regulator concluded a review of Royal Mail and its universal service obligation and decided the current framework for regulation would be extended from 2019 to 2022.

Ofcom said it had decided not to impose new controls on prices but it would tighten the rules about how it sells wholesale services to rival operators.

Jonathan Oxley, Ofcom competition director, said: "We know people value the universal postal service and we will continue to ensure that it remains effective.

"Our review has shown that current rules are generally working well for companies and households.

"Royal Mail still has room to improve. So we'll keep a very close eye on all aspects of the company's performance, and step in if we need to protect consumers from high prices."

Royal Mail said it was reviewing Ofcom's statement and would respond in due course.