Intelligent CIO North America Issue 44 | Page 59

CASE STUDY
Increased competition in parcel market continuing to negatively affect revenue – with parcels representing roughly half of Canada Post ’ s revenue .
Transaction Mail volumes and revenue continued to decline , but Direct Marketing volumes and revenue increased in the third quarter .
For the first three quarters of 2023 , Canada Post ’ s revenue fell by $ 154 million , or 3.5 % compared to the same period of the prior year .
In the third quarter , Transaction Mail revenue fell by $ 43 million ( 7.7 %) as volumes declined by 40 million pieces , or 7.5 % compared to the same period a year earlier .
For the first three quarters of 2023 , revenue declined by $ 83 million , or 5.0 % while volumes also fell by 5.0 % or 78 million pieces , compared to the same period of 2022 .
This was largely the result of a continued shift toward digital channels on the part of consumers and mailers .
In January 2024 Canada Post confirmed an intention to sell third-party logistics provider SCI Group – one of Canada Post Group ’ s strongest performers – to Montréal-based Metro Supply Chain .
“ SCI has been a strong performer for the Canada Post Group of Companies over the years .
“ This move will help focus our efforts on continuing to lead in the rapidly growing ecommerce market ,” said Ettinger . p

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