UK Post Office plans sale of some larger branches to retailers to cut costs
The UK Post Office is planning to sell some of its large High Street branches to convenience store companies in an effort to cut costs and start making profits in the current financial year. The loss-making group said it was reviewing the future of its 557 directly-owned Crown Offices, which lose Pounds 65m a year thanks to soaring rents and labour-intensive working practices. The Post Office is also in the process of closing 3,000 urban sub-post offices, which are owned and operated by private business people, as it says there is overcapacity in the network.
The Post Office said about 50 of the Crown Offices would be sold off to retailers, including convenience store chains such as Londis, but that a smaller Post Office franchise could be operated from some stores. It denied reports that a decision would soon be made by the state-owned group on whether to sell the entire Crown Office network. “This is a gradual review process, and has been ongoing for quite a while.”
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