(Montreal) Hit by increased competition in parcel delivery services and the return of in-person shopping, Canada Post saw lower revenue and volumes in its parcel business in 2022.
Thus, in 2022, parcel sector revenue fell by 99 million year-on-year, while volumes fell by 75 million shipments, or 20.4%.
Canada Post is pointing the finger at increased competition from parcel delivery services, returning customers and falling consumer spending. It was also affected by problems with supply chains.
Packages make up about half of Canada Post’s revenue, the company notes.
However, direct mail improved with a sales increase of 32 million or 3.9% and a volume increase of 67 million items or 2.1%.
Canada Post explains that regarding direct marketing, “companies resumed their marketing campaigns with the return to in-person shopping,” but that “campaigns later slowed as economic uncertainty increased and businesses reduced spending.”
However, transactional mail continued to be affected as its revenue fell by 70 million or 165 million items.
“Revenue and volumes declined from higher 2021 levels as the sector benefited from census broadcasts and the federal election,” Canada Post said.
For fiscal 2022, Canada Post reported a pre-tax loss of $548 million, compared to a pre-tax loss of $490 million in 2021.
Canada Post revenue declined $167 million, or 1.9%, from 2021. “While revenue in the parcel segment was down from 2021, it was higher than before the pandemic,” the company notes.
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