Royal Mail Owner Acquires Stake in Collect+ and Launches High Street Rebrand

Published: 30 September ‘2025. The English Chronicle Desk

Royal Mail’s new owner, International Distribution Services (IDS), has announced a major expansion of its presence on the UK high street by acquiring a substantial stake in the parcel network Collect+ and rebranding thousands of convenience stores as Royal Mail Shops. The move marks the first significant investment by IDS since its takeover by Czech billionaire Daniel Křetínský in April, a £3.6 billion deal that reshaped the landscape of Britain’s postal and delivery services.

IDS has purchased a 49% stake in Collect+ for £43.9 million, gaining access to nearly 8,000 pickup points located across newsagents, convenience stores, supermarkets, and petrol stations. The rebranding initiative is designed to extend Royal Mail’s visibility and services beyond traditional Post Office branches, offering customers a new way to collect, send, and return parcels with greater convenience.

Alistair Cochrane, interim chief executive of Royal Mail, described the launch of Royal Mail Shop as a significant milestone. “The Royal Mail Shop brand creates a new and improved high street destination for all our customers’ parcel needs in one location,” he said. “This investment is part of our strategy to make Royal Mail more convenient. From lockers to solar-powered postboxes, we have the UK’s largest network of out-of-home parcel points, and we are committed to being the nearest and simplest choice for our customers.”

Unlike many traditional Post Office branches, Royal Mail Shops will operate during evenings and weekends, providing greater flexibility for customers who may not be able to access services during standard working hours. The shops will initially offer Royal Mail’s Tracked 24 and Tracked 48 services, with plans to expand the range of products over time. By allowing customers to pay in person, Royal Mail aims to address the demand for more accessible and straightforward parcel solutions.

The initiative comes two years after Royal Mail lost a historic 360-year-old monopoly on parcel deliveries from Post Office branches, following the entry of private delivery firms such as Evri and DPD. Despite this, the partnership with Collect+ has allowed Royal Mail to extend its footprint, enabling customers to drop off returns and pre-paid parcels at Collect+ shops across the country. These stores will continue to accept other carriers’ parcels for pre-paid collection and drop-off, maintaining their multi-carrier service model.

Collect+ was originally founded as a joint venture between PayPoint and the delivery company Yodel in 2009. PayPoint later acquired full ownership for £6 million in 2020. Yodel, which was owned by the billionaire brothers David and Frederick Barclay, was subsequently acquired by InPost in April. IDS’s investment in the parcel network signals a renewed focus on parcel delivery services, a sector that has experienced rapid growth amid the ongoing boom in e-commerce.

The expansion of Royal Mail Shops coincides with a strategic shift in Royal Mail’s operations. The company plans to reduce letter deliveries, discontinuing second-class mail on Saturdays and transitioning the service to every other weekday from 28 July. The decision follows challenges in maintaining delivery standards, with Royal Mail reporting that nearly a quarter of first-class mail was delivered late in the three months leading up to 29 June. Křetínský has pledged to provide Royal Mail with “a fresh start,” prioritising parcel services to meet growing consumer demand.

Royal Mail Shops are expected to enhance the company’s high street presence significantly. With nearly 24,000 parcel points across the UK, including 2,000 lockers, 11,500 Post Office branches, 1,200 Royal Mail customer service points, and 1,400 parcel postboxes, the addition of Collect+ stores represents a substantial expansion of Royal Mail’s retail footprint. By leveraging these locations, IDS aims to create a seamless network that offers convenience, accessibility, and speed for customers.

The initiative also aligns with broader trends in the delivery sector, where flexibility and customer-centric services have become critical differentiators. With online shopping continuing to grow, parcel delivery networks are increasingly viewed as essential infrastructure for both retailers and consumers. By rebranding Collect+ stores as Royal Mail Shops, IDS seeks to position the company at the forefront of this evolving market.

Last month, Royal Mail partnered with the online resale platform Vinted, enabling customers to collect pre-paid parcels from these stores. The collaboration highlights the growing importance of convenience-oriented delivery solutions, particularly as consumers increasingly expect flexible, high-quality services. Royal Mail Shops will play a key role in meeting these expectations, particularly for customers who prefer to handle their parcels in person rather than relying solely on online processes.

Cochrane emphasised that Royal Mail Shops would not only serve individual consumers but also benefit businesses. The convenience of extended opening hours, coupled with a broad geographic reach, ensures that small and medium-sized enterprises can access reliable parcel services without relying solely on Post Office locations. “This is about giving our customers options,” he said. “We want to be wherever they need us, whenever they need us, and with the services they want.”

The strategic focus on parcels reflects a broader shift in the UK postal market, as traditional letter volumes decline and parcel deliveries surge. While Royal Mail continues to play a critical role in national communications, the company recognises that growth opportunities lie in e-commerce and logistics services. By integrating Collect+ into its network and rebranding stores under the Royal Mail banner, IDS is strengthening its capacity to compete in this fast-growing sector.

Industry analysts have noted that the move could have a transformative impact on the high street, providing a visible and accessible presence for Royal Mail in areas where Post Office branches may be limited. The model also allows the company to leverage existing retail infrastructure, reducing the need for standalone locations and making services more convenient for customers.

Looking ahead, IDS intends to continue expanding the range of products and services available at Royal Mail Shops. While the initial focus is on Tracked 24 and Tracked 48 parcels, future offerings may include additional postage options, packaging services, and other value-added services. The flexibility of the format, combined with extended opening hours, positions Royal Mail Shops as a competitive and customer-friendly alternative to online-only delivery solutions.

Křetínský has repeatedly emphasised his commitment to modernising Royal Mail, with a focus on parcel services as a growth area. “The demand for parcels continues to rise,” he said at the time of the takeover. “By investing in convenience, high street presence, and flexible services, we are giving Royal Mail a fresh start and aligning it with the needs of the modern customer.”

The rebranding of Collect+ stores represents a significant milestone in this strategy. By connecting nearly 8,000 high street locations directly to Royal Mail’s network, IDS is effectively creating a vast, integrated parcel distribution system that can meet the demands of both individual and business customers. The company is positioning itself as a high-street and digital-first service provider, capable of competing with private logistics firms while maintaining the heritage and trust associated with the Royal Mail brand.

As the company implements these changes, attention will also be on how effectively it manages customer experience, operational efficiency, and staff training. Ensuring consistent service quality across thousands of locations is crucial, particularly as the rebranded shops become a primary touchpoint for consumers.

In summary, IDS’s acquisition of a 49% stake in Collect+ and the launch of Royal Mail Shops marks a pivotal moment in the evolution of the UK’s postal and delivery sector. By combining a high street presence with digital innovation, the initiative aims to meet growing demand, reduce delivery delays, and offer consumers and businesses a convenient, reliable alternative for sending and receiving parcels. For Royal Mail, this represents both a strategic investment in the future and a statement of intent: the company is embracing change, modernisation, and customer-centric services to maintain its relevance in an increasingly competitive market.