Spanish postal operator Correos has responded to full market opening at the start of 2011 with anew four-year strategy to diversify its business and expand in the parcels, direct marketing and IT
sectors.The 2011 – 2014 business plan responds to the sector’s regulatory, financial andtechnological changes in order to guarantee a viable company and the universal postal service,which Correos will provide for the next 15 years as the designated operator in Spain.
The state-owned group said it will draw on the strengths of the mail/small parcels operatorCorreos, express parcels subsidiary Chronoexprés, technology division Correos Telecom and Nexea,the new name for the hybrid mail business, to achieve these aims.
Under the plan Correos will focus on and invest in four main markets: mail, parcels, directmarketing and technology-related services. It will seek to increase revenues and gain market sharein all four areas. In addition, the group plans to expand its presence in the supply value chainwith additional pre- and post-distribution services. These could include, for example, design andprinting of direct marketing material through Nexea, integrated B2B and B2C parcel deliveriesthrough the complementary Correos and Chronoexprés networks, or IT integration with customers.
The Spanish company has kicked off the new plan by presenting a new corporate image. The fourmain operating companies are clearly shown as belonging to the ‘Grupo Correos’.
Alberto Lafuente, president of Correos, commented: “This is a plan with a clear commercial andtechnological focus, designed to meet the interests of current and future customers as well as ofthe staff. It will permit us to be a competitive company offering integrated and efficient servicesalong with a top quality postal service for businesses and citizens, without giving up our role asa public service.”
“Our objective is to succeed in implementing the plan without making losses, despite thenegative forecasts and the 20% drop in postal volumes in the last three years, in order to securethe future of the company and its workers,” he stressed. The key to success will be a change ofvision refocusing on customers rather than products and offering them integrated solutions to “simplify their lives”, he added.
Speaking with Spanish media, Lafuente stressed that Correos had no plans for large-scale joblosses despite an expected annual volume decline of 3-5% in the coming years. The group would makean “insignificant” loss of less than €1 million in 2010, he added. He reiterated that there are noplans to privatise the company.
In 2009, Grupo Correos saw revenues drop 4.8% to €2.2 billion and made a small net profit of €3million. The postal business, operating under the Correos name, made a net loss of €2 million andits revenues fell by 4.5% to €2.04 billion due largely to a 9.6% drop in letter volumes.
Chronoexprés made a net loss of €4.7 million in 2009. Its volumes fell 2.4% to 29 million itemsand revenues dropped 8% to €132.5 million. The hybrid mail business (now Nexea) made a small losson revenues of €12.8 million, while Correos Telecom made a small profit on revenues of €7.3million.
