PostNord from Denmark stops sending letters – a model for Luxembourg Post?

There are no immediate plans for Luxembourg’s state-run postal service to cease deliveries of letters, the company has said, as its counterpart in Denmark gets ready to scrap the service within weeks.

This year will mark the last Christmas in which Denmark’s PostNord delivers Christmas cards and other letters, having announced back in March that it would stop deliveries of all letters at the end of December, with the number of deliveries having slumped by 90% since 2000. All public post boxes are also to be abolished in Denmark under the plans.

For its part, Post Luxembourg has also seen a huge decline in the number of letters sent, although not on the same scale as in Denmark. Comparing PostNord’s letter volume with the number of inhabitants in Denmark, the company only delivered around 18 letters per capita last year, whereas Post Luxembourg delivered 136 letters per capita in the same period in the Grand Duchy.

According to its 2024 annual report, Post Luxembourg delivered 93 million letters last year, around 60 million fewer than in 2014. There has also been a steady decline in the last few years, with 107 million letters sent in 2022 and 97 million in 2023.

“Danish Post’s decision to discontinue traditional letter delivery at the end of the year is an expression of a particularly consistent digitalisation strategy. Denmark is a special case in this respect – and not necessarily a role model,” a Post Luxembourg spokesperson told the Luxemburger Wort.

While the number of letters delivered in Luxembourg is falling, the parcel business is gaining in importance due to the growing online trade. Last year, the company recorded a 13% increase in parcel shipments compared to the previous year.

Regardless of the trends in letter mail, as a public institution with the state as its sole owner, Post Luxembourg cannot simply decide overnight to stop delivering letters. Under its current contract with the state, which runs until 2029, the company must offer a so-called “universal service” – which means it has to deliver letters and other postal items throughout the country.

These developments also affect employees in the logistics sector. Against the backdrop of falling letter volumes, the growth of e-commerce and increased competition in the logistics sector, Post Luxembourg is focusing on adapting to a transformation of its role with the same employees, the spokesperson said. According to the 2024 annual report, the logistics division at Post Luxembourg currently employs 1,273 people.

“The letter and parcel delivery processes are becoming increasingly interlinked – both in terms of sorting and delivery,” said the Post Luxembourg spokesperson, adding that the number of letterboxes across the country has remained stable despite the decline in letter volumes, with 1,089 yellow Post Luxembourg letterboxes at present.

In 2024, Post Luxembourg generated €518 million – the majority of its revenue – in the areas of telecommunications and IT, such as mobile phone and internet plans and TV packages. In stark contrast, revenues from mail and logistics business represented just €176 million last year, according to its latest annual report.

(This article was originally published by the Luxemburger Wort. Machine translated using AI, with editing and adaptation by John Monaghan)