Postal strike ‘could cost online retailers £220m’
- Added:
- Oct 16, 2009
A postal strike lasting five to ten days will cost online retailers an estimated £220m, according to new report.
The study, commissioned by price comparison site Kelkoo indicated that 94 per cent of shoppers would be unlikely to place further orders with a retailer that failed to deliver.
The union representing Royal Mail workers has said national postal strikes could begin on Thursday 22 October.
A number of localised walkouts have already been taking place across the country for several months.
Bruce Fair, managing director of Kelkoo, said: "The timing of the strike beggars belief. In one fell swoop it threatens to bring the postal network to a standstill, spoil the beginnings of the retail sector's financial recovery, increase prices for cash-strapped consumers and cause a further backlog."
Online retailers are bracing themselves for higher delivery costs as the Post Office faces a series of nationwide strikes.
Major retailers, including John Lewis and Amazon are putting plans in place to switch to other delivery services if the strikes go ahead. But they face significantly higher costs. A package that costs £1.90 to post through Royal Mail would cost £4.80 by Parcel Force, a 153% increase, according to a study by the Centre for Economics and Business Research.
