(Montreal) Affected by increased competition in parcel delivery services and the return of in-person shopping, Canada Post is posting lower revenues and volumes in its parcels business in 2022.
As a result, parcels revenue fell by $99 million in 2022 compared to the prior year, while volumes fell by 75 million items, or 20.4%.
Canada Post is pointing the finger at increased competition from parcel delivery services, customers returning to stores, as well as declining consumer spending. It has also been impacted by problems with supply chains.
Parcels account for about half of Canada Post’s revenue, the company notes.
Direct marketing, however, did better, with revenues up 32 million or 3.9% and volumes up 67 million items or 2.1%.
Canada Post explains that when it comes to direct marketing, “businesses resumed marketing campaigns with the return to in-person shopping,” but that “campaigns subsequently slowed as economic uncertainty heightened and companies have reduced their expenses”.
Transaction mail, however, continued to be affected, as its revenue fell by 70 million or 165 million items.
“Revenues and volumes were down from higher levels in 2021, when the sector benefited from census mailings and the federal election,” Canada Post said.
For fiscal 2022, Canada Post posted a pre-tax loss of $548 million, compared to a pre-tax loss of $490 million in 2021.
Canada Post revenue was down $167 million or 1.9% from 2021. “Although parcel business revenue was down from 2021, it was higher than before the pandemic,” notes the society.