Greater focus needed on creating a sustainable and viable post office network for the future

On 8th October 2007 Postcomm published latest post office network annual report.

Postcomm, the independent regulator for postal services, has called on the Government and Post Office Ltd to ensure that the sustainability of a viable post office network is their top priority once the current closure programme is completed.

Postcomm does not regulate post offices but it does monitor and research developments in the network and provides independent advice to the Government. This is in the form of an annual report which is published today – entitled “A sustainable customer focussed network” – along with supporting research on “Access to postal services”.

Among its recommendations, the regulator has identified that the network will need:
a clear vision and a combination of commercial products and services that can attract and retain new customers – for example, Post Office Ltd has run trials with Argos, where customers were able to collect online purchases from their local post office, and is working on other propositions;
more links with commercial partners who recognise and can benefit from Post Office Ltd’s brand strength – for example, its joint venture with Bank of Ireland to sell financial services which is attracting 50,000 new customers every month;
stronger links with communities to identify ways in which they can work with Post Office Ltd and the Government to help sustain the provision of local postal services.

Postcomm chairman Nigel Stapleton said:

“The Government and Post Office Ltd must make the creation of a sustainable and customer-focussed post office network the priority. Keeping things as they are today is not an option. Post offices need strong leadership, the right mix of products and services, and a well-motivated staff in order to create a sales environment that will attract and keep the customers they need to survive.

“Our research shows that mail is the post office’s biggest asset and makes it stand out among other retail networks. Mails business, such as the handling of internet orders, is a growth area and can bring customers into the branch to buy other products. Post Office Ltd is making some progress in product innovation and exploiting new mail opportunities such as “Local Collect” service for internet shoppers, but more must be done.”

“Postcomm would also like to see a debate about giving Post Office Ltd more freedom to seek new business and the possible merits of separating its retail business from the rest of Royal Mail. In the coming year, Postcomm will be looking at evidence to inform this debate in Government and with all those who care about the services and funding of the network for the longer term.”