Tag: Post Office

Disposal of surplus Royal Mail property agreed

Royal Mail announced a deal with Land Securities Trillium (LST), a Land Securities Group business, for the disposal of a portfolio of 285 surplus or partially-occupied premises. The deal, which followed a robust competitive process, is a key element in Royal Mail’s drive to increase efficiency and compete effectively in the UK postal market.

Some 108 of the properties are surplus to Royal Mail’s operations and LST will utilise its skills to refurbish these and seek new occupiers. Of the remaining 177 properties only part of the space is being used for operations and these will be leased back to Royal Mail for 15 years at a competitive rent. The properties comprise a total of 265K sq.m. in locations across the UK. This deal will have no impact on Royal Mail or Post Office® operations.

The net proceeds for the portfolio of assets and leasehold liabilities were in excess of GBP 70 million. This represents an excellent deal for Royal Mail that takes advantage of the strength of the UK real estate market to realise value whilst streamlining its operations by removing surplus space from the portfolio with a significant annual saving in costs.

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Managed Closure of Post Office Branches – Learning from the UK Experience

Increasingly, postal networks worldwide have experienced closures or are facing uncertainties in the future of post office branches as they become less frequently used. In this Postal Technology International article, NERA Consultants Leela Barham and Simon Maunder and Director John Dodgson review UK experience of a managed closure and investment program to deliver a sustainable configuration of branches. The authors recommend that struggling postal networks use a model similar to the UK’s Urban Reinvention Programme (URP), which managed closures of urban post office branches in 2002-2005. The URP offered the opportunity to continue to meet accessibility requirements set out by the UK regulator; minimize the impact on customers by providing information about alternative branches; and invest in the remaining branches to maximize business opportunities.

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UK Post office closure proposals update

Postwatch, the watchdog for postal services, urges customers to have their say on the future of the post office network by responding to the government’s consultation, due to close on 8th
March.

The government is proposing to close up to 2,500 post offices throughout the UK, establish new minimum access criteria to maintain a national network, put in place 500 ‘outreach’ services such as mobile post offices, and continue to fund the rural network to 2011. These proposed changes seek to address the network’s current difficulties, with 90 percent of rural branches failing to make a profit, revenue from government transactions falling by GBP 68 million last year, and overall financial losses for the network expected to rise from GBP 111 million to GBP 200 million this year.

Commenting on the consultation, Millie Banerjee, Chair of Postwatch, said:
“The government’s proposals signal a massive change for the post office network, and anyone who uses these services should take an interest in the consultation.

“Postwatch has been urging the government to take action to address the current problems and to put in place a sustainable way of meeting customers’ post office needs. We therefore welcome the opportunity the consultation gives to contribute our thoughts on the appropriate next steps.

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Growing concerns over the UK government's post office closure proposals

The influential Counters Advisory Group, chaired by Elizabeth Hodder of Postwatch, has today written to Postal Services Minister Jim Fitzpatrick setting out its concerns with the Government’s proposals for the closure of 2,500 post offices. The Minister attended the group’s meetings in December and January.
The group wants, among other things:
• All local factors which affect a community to be taken into account when deciding the future of individual post offices.
• The timetable for the restructuring programme to be flexible enough to secure the right outcome for customers.
• Local consultations to take place over 12 weeks and not 6 as wanted by the Government.
• Outreach solutions (like mobile post offices) to be in place before the post offices they replace close.

In support of these points, Elizabeth Hodder said:
“The Government’s proposals unnecessarily restrict the factors to be taken into account to distance and topography. The majority of the group want issues like the availability of public transport, walking distance to the nearest post office (not just as the crow flies measurements), the effect on the local economy and relevant socioeconomic factors such as age, health and deprivation to be assessed.

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UK Post offices offered cash to close down

Post offices have been offered GBP60,000 to close down as part of Royal Mail’s concerted bid to close thousands of branches, it has emerged.
The government is expected to give the green light to the closure of 2,500 post offices when the consultation is completed in March.
And subpostmasters are expected to receive similar “compensation” to the last round of closures – an average of GBP60,000 each.
Bournemouth Borough Council is trying to set up a rare joining of forces with the councils of Poole and Christchurch to petition the government en masse.
Cllr Emily Morrell-Cross said: “Out of 14,000 branches nationwide, we are told only 4,000 are viable. So this round of closures is just the beginning. We need to act now.
A spokesman for Royal Mail said: “The network is currently losing GBP4 million – that is the big issue.”

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