Canada Post reports double digit growth in parcels

Amidst mail volumes in freefall and a recently stalled project to replace home deliveries of mail with community mail hubs, Canada Post has reported a surge in parcel deliveries that are growing at around 16% nationally in the last year.

Where the major urban centres of Toronto and Vancouver have long been major centres of e-commerce use, smaller urban centres are starting to see greater public interest in the market. Windsor Ontario saw 29% growth in parcel deliveries in the last year, a town just across the border from Detroit that like Motor City has a lot of car manufacturers in the city. Kitchener Ontario and Saskatoon saw strong growth rates too, with 27% growth in e-commerce volumes across the cities.

Canada Post ahs also noted a change in shopping habits among Canada’s residents. Where traditionally people have bought fashion items and mass marketplaces such as Amazon and eBay, there has been a change in shopping habits toward other sectors. Toys and hobbies saw a 21% growth in the last year, while office supplies saw a 15% increase in volumes and sporting goods had 11% growth.

Shoppers have also gone from occasional online shoppers to what is termed ‘hyper shoppers’, buying online 11 or more times a year as the e-commerce sector establishes itself in Canada.

Canada Post is responding to the growth figures in its business by offering new services. A new ‘drive thru’ parcel pick up store has opened in Richmond, Ontario where customers can pick up their parcels without even getting out of their cars. Other services include a store where customers can try on fashion items before deciding whether to make the purchase. Canada Post handles 2/3rds of the country’s parcel deliveries and is making changes to meet demand. Such research informs the national postal operator and guides it toward future projects.