Target has linked with DM production firm Lloyd James for a 5,500-piece campaign. It was the first commercial mailing through its new postal service Target Post.

The service incorporates a pre-printed postmark and clients state the priority of each mailing.

"The next step in our relationship with Target is to encourage customers to utilise Target Post for their own direct mail projects," said Lloyd James operations manager Stuart King.

Target Post general manager Andrew Harden-Sweetnam added: "The level of early interest has been very positive and we are already in discussions with several other interested parties."

Meanwhile, UK Mail, a division of Business Post Group, has announced it will operate 14 automated sorting centres across the UK by the end of 2006. It comes as part of a 5m investment programme and takes UK Mail into the lower end of the business market.

"Choice in the market will drive the state-owned operator to improve service quality," said UK Mail managing director Steve Patrick.

- Royal Mail has been fined over 11m for the late delivery of letters by industry regulator Postcomm.