Photo Source: Polina Tankilevitch
New Zealand Post is facing its busiest parcel delivery season yet, with record-breaking volumes reflecting the ongoing boom in e-commerce. At the same time, the company is poised for a shift in direction, as four new board members step in to lead the way forward.
Surpassing Pandemic Peaks
This year’s peak parcel season has smashed records, even surpassing the pandemic-era surge in online shopping. “We’ve received 580,000 parcels to deliver last Monday,” an NZ Post spokesperson revealed, marking the largest volume “received into the network since 2019.” Over the course of the week, NZ Post anticipated handling a staggering 2.6 million parcels.
For comparison, the previous single-day record was 536,000 parcels on 29 November 2021. The highest annual volume recorded was 95 million parcels during the 2021 financial year. While the past year saw a total of 84 million parcels, NZ Post noted that international parcel growth offset a slight decline of 3% in domestic deliveries.
A Longer Peak Period
The extended peak season, now spanning Labour Weekend to Christmas, reflects a shift in consumer behaviour. Events like Black Friday and Cyber Monday have expanded the window of heightened activity. “The new normal” includes deliveries to both retail outlets and direct-to-consumer homes, with NZ Post CEO Dave Walsh pointing out that this period consistently tests the organisation’s capacity.
However, Walsh expressed concerns about the months beyond the peak. “How is the New Zealand economy going to look as we go into next year, as people get back into a normal pattern again?” he questioned during NZ Post’s annual review before Parliament.
Strategic Investments Drive Efficiency
NZ Post has invested heavily in infrastructure and strategic acquisitions to keep pace with increasing parcel volumes. In 2022, it acquired Fliway Group, which specialises in delivering oversized items like whiteware and industrial machinery. In 2024, it further improved its logistics capabilities by purchasing PBT Group’s courier customer contracts.
The company also consolidated its Auckland operations, reducing the number of parcel depots from four to three with the opening of a purpose-built processing centre. “Volume was critical to the business case,” Walsh stated, “but long term, right now, looks like it’s been a really good investment.”
Untapped Potential in E-Commerce
While parcel volumes are robust, Walsh sees room for growth in New Zealand’s e-commerce landscape. “NZ’s e-commerce ratio to retail is still quite low,” he observed. “If we get close to some of the European metrics, we’re about halfway there.” We aim to be on the small profit side this financial year … and then the year after, we want to see a further step on that.”
Leadership Changes to Guide the Future
NZ Post’s governance is adjusting amid this operational expansion. Acting State-Owned Enterprises Minister Chris Bishop recently announced four new board appointments, including Paula Rebstock as chair. Rebstock, a seasoned leader with extensive experience, previously chaired the Commerce Commission and the Accident Compensation Corporation.
Joining her are Paul Reid, a former NZ Post COO; Brodie Stevens, a logistics and shipping expert; and Linley Wood, an independent director at BNZ. They will work alongside existing board members Reuben Casey, Paul Cochrane, Roger Gray, and Bruce Wattie.
Rebstock’s appointment is seen as a strategic move to align NZ Post’s leadership with its ambitious growth trajectory. “With her expertise, particularly in navigating complex organisational challenges, we are confident she will provide strong leadership during this transformative phase,” Bishop stated.
A Balancing Act of Growth and Stability
Currently, as NZ Post closes its busiest season yet, the company reflects the larger trends reshaping the global postal and logistics industry.
Record-breaking parcel volumes highlight the continued growth of e-commerce, while strategic investments and leadership changes position NZ Post to tackle the challenges of an evolving market.