Around 8,000 Collect+ convenience stores will be rebranded as Royal Mail shops after the delivery giant's owner bought a stake in the parcel service firm.

International Distribution Services (IDS) announced it had acquired a 49% stake in Collect+ with a £43.9 million investment. The new high street shops will sell Royal Mail postage over the counter for the first time, meaning customers can pay in person rather than online beforehand. They will continue to offer services to collect, send and return parcels, including from other carriers, and will have extended opening hours, including evenings and weekends.

Some 500 shops have already been rebranded and will be rolled out more widely in the coming months, while self-service kiosks are set to be installed in some locations from the beginning of 2026.

Collect+, which has a network of more than 14,000 locations made up of newsagents, convenience stores, supermarkets and petrol stations, was bought out by PayPoint in 2020.

PayPoint said IDS's investment values the business at £90 million and sets it up for future growth.

IDS's investment in the parcel network follows its decision to pull back on letter deliveries.

Royal Mail is expected to ditch second-class letter deliveries on Saturdays and change the service to every other weekday, across the UK and starting from July next year.

IDS was bought by Czech billionaire Daniel Kretinsky's EP Group for £3.6 billion earlier this year after being cleared by the Government, passing the 500-year-old Royal Mail into foreign ownership for the first time.

Mr Kretinsky pledged to secure the long-term future of the postal service and give it a "fresh start", particularly by focusing on meeting booming demand for parcel services.

Alistair Cochrane, Royal Mail's chief executive, said: "The launch of the Royal Mail Shop brand creates a new and improved high street destination for all of our customers' parcel needs in one location.

"This investment is one of the ways we're making Royal Mail more convenient."