New blueprint for UK flagship Post Office branch network

Post Office Ltd today set out a new blueprint for a sustainable network of flagship Post Office branches. The company will continue to run 373 Crown Post Offices in UK towns and cities alongside those branches run by private subpostmasters and mistresses and by retail franchise partners. As part of the plan, following a six site trial last year, a further 70 branches are expected to move to nearby WHSmith stores under a new partnership agreement, also announced today.

Managing Director Alan Cook said, "Our job is to provide the Post Office branches our customers want and use, and to do so in a sustainable way. We are now in a position to make a long term commitment to safeguard flagship Post Offices on high streets and in shopping centres. We will continue to run, and invest in, a total of 373 Crown Post Offices – as part of our flagship network showcasing a modern range of competitive, convenient services.

"At the same time, we are tremendously pleased to have secured WHSmith as a major partner in that flagship network, committed to operating 76 additional Crown Post Office branches in its own stores. The combination of Post Office Ltd and WHSmith makes perfect sense for customers – there are a lot of natural links between the products we sell and we both believe that the combination of WHSmith store and Post Office branch will strengthen our respective businesses. These branches will remain as main Post Offices offering the same range of over 170 products and services as available in all Crown Post Offices. We can now start to put the Crown office network on a sound financial footing, after many years of heavy losses.

"Crucially, this partnership is about keeping major Post Office branches open in our towns and cities and avoiding the need for closures."

The key points announced today are:

• 373 of the current 458 Crown Post Office branches to be retained under Post Office Ltd management;
• a new programme of investment to modernise these branches, including the provision of dedicated services for small business customers;
• a partnership with WHSmith Retail to relocate and invest in a further 70 existing branches in high quality, accessible WHSmith stores, located in the retail sites where customers are already shopping, and close to the existing branches;
• further work to establish the future for a small number of branches where the option to work with a franchise partner is still being considered.

Investment in a modern Crown Office network

The Crown Office network of 373 branches, together with the 76 branches operated by WHSmith, will give Post Office Ltd a high quality flagship network, offering expert knowledge and advice to consumers and small business customers alike. New ways of providing services are already being tested in a number of branches, and will form part of a major, customer driven, refurbishment programme over the next few years.

Alan Cook said, "We can always serve customers better – and we have innovative ideas to make this a reality. We’re already testing a self-service kiosk so that customers wanting to post packets and parcels don’t need to go to the Counter. And we’re also developing dedicated Counters for small business and online auction customers. The position we’ve now reached – with a clear plan to create a profitable future – means we can focus on the feedback from initiatives like these and create modern, successful branches."

Partnership focused on customer service

By the end of Summer 2008 it is expected that 76 Post Office branches will be sited within WHSmith stores. These will be main Post Offices, offering the full range of Post Office services and operated by specially trained professionals – who may include some current Post Office people. All branches will be fully accessible to all customers, with special arrangements in place to assist those customers with special access needs.

Alan Cook said, "WHSmith is a partner that inspires the same trust and offers the same convenience and customer service as that offered by The Post Office. In partnership we will be working together to provide our shared customers with easy access to services and, where possible, to extended opening hours, including trials of Sunday opening."

The partnership announced today builds on the success of six trial locations where Post Office branches have already moved to nearby WHSmith stores. Customers in Ashton under Lyne, Altrincham, Swansea, Shrewsbury, Slough and Hammersmith have given a positive response to both the location and service levels of the new branches – citing shorter queues, speedier service and a more convenient location.

There will be opportunities for existing Post Office Ltd people at the relocated branches to be re-employed by WHSmith in the new branches, although some people are expected to take up alternative roles within Royal Mail Group or take voluntary redundancy should they wish to leave the business.

The details of each relocation will be the subject of a local public consultation to get customers’ views. Alan Cook said, "This partnership means we will not be withdrawing services from locations which could otherwise risk losing their main Post Office. We are keen to understand our customers’ views, and any concerns about services, opening hours and accessibility they may have, so that we can offer the best possible service in our new premises."

Consultation will start today in six of the 70 proposed relocations, with the remaining 64 due to start before the end of July 2007.

Ends

Issued by Post Office Ltd
148 Old Street
LONDON
EC1V 9HQ
www.postoffice.co.uk

Notes to Editors

WH Smith PLC operates from around 540 high street stores and around 260 retail units in airports, stations and motorway service areas. The High Street business sells a wide range of newspapers, magazines, stationery, books and entertainment products, while WHSmith Travel sells a tailored range of newspapers, magazines, books and confectionery products for people on the move. In addition, WHSmith Direct – www.whsmith.co.uk – serves customers on the internet 24 hours a day.

www.postoffice.co.uk