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Royal Mail is installing parcel lockers in Sainsbury’s supermarkets across the UK, as the postal group races to catch up with rivals ahead of a takeover by Czech billionaire Daniel Křetínský.
The company, whose owner, International Distribution Services (IDS), is set to finalise a £3.6bn sale to Křetínský this month, said on Monday that it was “rapidly expanding” its network of parcel drop-off and collection points in response to strong demand from customers.
The use of parcel lockers has surged across the UK and Europe off the back of the rise in ecommerce. Royal Mail has fallen behind UK rivals, including Amazon and InPost, which have been quicker to roll out lockers, offering a convenient way for consumers to collect deliveries without needing to be at home.
Jack Clarkson, group strategy and transformation director at Royal Mail, said the popularity of second-hand marketplaces, such as Vinted, has also increased demand for lockers.
He added: “To meet our goal of making sending and receiving parcels as easy as possible, we must considerably expand our network.”
The Sainsbury’s deal marks the first such agreement between the Royal Mail and a UK supermarket. The first Royal Mail lockers are installed in six stores, with plans to grow that number quickly in the coming months. Both companies declined to comment on the total number of lockers they plan to install.
Royal Mail remains the UK’s largest delivery group, but it has lost market share and struggled to keep up with more nimble competitors.
Křetínský, who is also the second-largest shareholder in Sainsbury’s, has said he planned to invest heavily in parcel lockers to help Royal Mail deliver sustainable profitable growth. However, company management has long been challenged by the UK postal workers union in its efforts to better compete with the likes of Amazon.
Union head Dave Ward said in February he was concerned about the extent of Křetínský’s planned investments and their impact on workers.
Lockers are available for collections throughout the day and are cheaper than home deliveries for both consumers and delivery companies. For supermarkets, opening lockers can help attract more consumers to their stores.
Royal Mail launched its parcel locker network in December, long after many of the prime locations were snapped up by rivals. The postal group now has 1,500 lockers, compared with at least 8,000 operated by Polish logistics group InPost and 5,000 operated by Amazon in the UK.
Some of the biggest delivery businesses told the FT last month that demand remained high, even after the industry installed more lockers in 2024 than in any previous year.
Křetínský’s purchase of IDS, the owner of the 509-year-old Royal Mail, has been approved by regulators and is expected to be completed this month, pending shareholder approval.
