Post offices ‘must modernise’ to survive

Post offices need to diversify and modernise their services if they want to survive, according to a report which found that a disproportionate amount of business is conducted in relatively few.

While there are 1,140 post offices, the bulk of transactions, two thirds, are conducted in 300 of these. Another 550 (48%) carry out 12% of total business.

If post offices are to survive, they need to diversify into financial services, social enterprise, public-service delivery and white labelling (), according to the business development group who compiled the initial report, published for consultation today.

Specifically, the report says An Post needs to:

• Develop an increased capability in financial services as the main banks are withdrawing from rural Ireland. An Post is working on an e-payments account, similar to a bank account, which it believes could deliver the necessary electronic payments infrastructure to meet the future needs of the Department of Social Protection.
• To develop an enhanced role for the delivery of government services. Motor tax, the electoral register, HSE payments, local authority payments and CAO examination feeds are being looked at by the group as services the post office could deliver. The report says this approach “is logical and could greatly improve the service delivered to those living outside of urban areas”.
• To develop feasible ideas for social capital and enterprise, to enhance the rural post office’s role as a “key social connection”. The ideas will be identified and costed in the final report.
• To sell white label products, which are goods or services created by another company sold by An Post as their own brand. The report says this could “drive footfall to post offices where other services can be cross-sold”.

Communications Minister Alex White, who set up the group, said changing consumer preferences meant many people weren’t using the post office anymore and that they needed to diversify and modernise to attract customers back. He said the work of the group, chaired by entrepreneur Bobby Kerr, “represents the best opportunity to place the post office network on a sustainable footing into the future”.

The consultation on the interim report runs from June 16 to July 28. There were 24 net closures of post offices between 2011 and 2014, compared to 198 net closures between 2007 and 2010.

Up to 65% of post offices are in rural areas, bringing important services to local communities. The Post office network is hugely reliant upon two contracts — the Department of Social Protection and NTMA savings.