Is It Time to Re-evaluate the Retail Network?

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The Postal Service is required by law to “provide, reliable, and efficient services to patrons in all areas and shall render postal services to all communities.” Consequently, the Postal Service has the largest retail presence in America with more than 32,000 leased or owned facilities located across the country.

Today, alternate access channels are widely available. Customers can purchase stamps and access services at the Postal Service’s website www.usps.com, self-serve kiosks, grocery stores, retail outlets, and privately-operated shipper locations.

What retail optimization and consolidation efforts are stakeholders most likely to support to assist the Postal Service during these challenging times?

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Meanwhile, in the past decade, business and household mailers have increasingly turned to electronic media to transmit correspondence that was formerly sent through the postal system. In addition, a weakened economy has resulted in declining mail volume and revenue.

The combination of the availability of alternative access and declining revenue requires the Postal Service to re-evaluate its retail network to eliminate growing excess capacity, reduce costs, and improve efficiency. In May 2009, the Postal Service began a national initiative, known as retail optimization, to consolidate its retail stations and branches in urban and suburban areas. Unlike some other retailers, the Postal Service can’t close their stores without generating public reaction. Closing just a small percentage of postal facilities can affect thousands of people and communities and is often questioned by those communities involved. As a result, there is a need for the Postal Service to work with stakeholders to balance their interests and optimize resources.

This topic is hosted by the OIG’s Network Optimization Team.

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Permalink | Comments (39) | Apr 12, 2010

 

 

39 Responses to “Is It Time to Re-evaluate the Retail Network?”

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  1. 39
    MailerJoe Says:
    May 6th, 2010 at 1:29 am

    This is an interesting discussion. Cost reduction is always a touchy subject as unfortunately you almost always end up looking at reducing salaries and benefits.

  2. 38
    Mike Says:
    May 3rd, 2010 at 10:48 pm

    I would have liked more than one option on the above vote! I dont mind delivary 3 days a week, if it keeps the postage rates down. Why are you so quick to “get rid” of old stamp issues. Collectors love to find these items. I had one postal clerk tell me he could not sell me the stamps in his drawer, because they were not in the inventory of his cash register!! (your new system) Lost sale right there!

  3. 37
    John Says:
    May 3rd, 2010 at 6:10 pm

    The P.O. gives out millions of $ for Management bonuses.The executives were all given a new Ford Fusion Hybrid to drive around in(713).That is where the problem is.Miss management,Sounds alot like A.I.G.As far as health care for employes,I pay $280 a month right now and retirees dont get any paid for.We have so many people in management in our office that they trip on each other.As far as getting rid of union workers,UPS has union workers and they make more hourly than USPS employes.They still make a profit so what does that tell you about USPS management

  4. 36
    Ray Racette Says:
    April 30th, 2010 at 4:23 pm

    Tuesday’s USA Today indicates the Postal Service is asking the public for input on cost containment.

    Delivery service should be reduced to three days per week. This would be accomplished by delivering Monday, Wednesday and Friday to one half the district served by a Post Office and Tuesday, Thursday and Saturday to the other half. The workforce and vehicle fleet should be reduced accordingly.

    The Defined Benefits Pension Plan should be discontinued and replaced by a Defined Contribution Plan as is the case in most operations in the Public Sector. Public Sector businesses simply cannot afford the Defined Benefits Plans and neither can the Postal Service.

    Retiree Medical Benefits should be discontinued as is also the case in the Public Sector.

    These measures would result in tens of millions of dollars saved every year.

    Rates should be increased for all classes of mail with the greatest increases applied to the class of mail that provides the greatest volume.

    These may not be “popular” measures but those necessary if the Postal Service is serious about cutting costs.

    Sincerely

  5. 35
    K Says:
    April 28th, 2010 at 8:53 pm

    Recently vacated Postmaster positions are now being filled. All lower level Postmaster positions should be withheld for possible consolidation with other offices depending on location and revenue. This should be done nationwide

  6. 34
    Neal Hansen Says:
    April 27th, 2010 at 8:24 pm

    Charge the junk mailers the same as everyone else pays.
    The Postal service would see increased revenue, I would see less junk mail, and it might even save a few trees.

  7. 33
    PM Says:
    April 27th, 2010 at 6:44 pm

    Maybe USPS can reduce costs by:

    1) using electric postal trucks or other alternative fuel sources for their postal vehicles.

    2) reducing the number of days for the delivery of bills, catalogs and junk mail (which should also save some trees).

  8. 32
    Mabel Says:
    April 27th, 2010 at 3:49 pm

    We can no longer afford the luxury of 6 day delivery to our houses; nor do we get enough mail to warrant.
    I suggest dividing the areas into Tues/Thurs/Sat or Mon/Wed/Fri. deliveries.This would seriously reduce gas costs while keeping the workers at current 6 days. Decreasing 1st class postage and increasing bulk/junk mail would also help consumers. Encouraging electronic banking would also expedite things.
    I am opposed to raising postage rates; let’s rethink what consumers really need.

  9. 31
    James R. Mefford Says:
    April 27th, 2010 at 11:32 am

    As a retired Postmaster I would like to suggest that we return to foot carriers. WhenI was appointed in 1976 at my first class office we had one vehicle that took relays to relay boxes for foot carriers to pick up on their routes and delived parcels and heavy items. Now we have four vehicles using mounted routes. We did not save any man hours wit the mounted routes and added the cost of gasoline and vehicles. Gasoline in 1976 was about 50 cents a gallon. I am sure if gasoline was$3.oo a gallon back then we would not have went to mounted routes.
    SAVE TENS OF MILLIONS OF DOLLARS AND GO BACK TO FOOT ROUTES!

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