Postal Service Says "Village" Plan Offers Opportunities
(Washington, D.C.) - A new alternative post-office model is being introduced by the U.S. Postal Service and it could bring needed foot traffic to corner markets, gas stations and other merchants who have been hit by the economic downturn.
Tuesday, the Postal Service released a list of 3,653, mostly small-town post offices that will be reviewed for possible closure, the Postal Service described a new strategy to hire local business to offer mailing services.
The postal service hopes to begin opening as many as 2,500 "village" post offices by the fall. The plan calls for the postal service to contract with small businesses in towns that are losing a post office, to offer mail services such as selling stamps and accepting packages. The arrangement would be convenient for consumers who are already shopping in these places and would also bring more foot traffic to the local merchants, Postmaster Patrick R. Donahoe said.
"It's a good opportunity for small businesses," he said. "Many general stores are hanging on for dear life out there with the recession and a lot of other issues."
Businesses that contract with the Postal Service can use the extra money to pay the rent, utility bills, and so on, he said. The postal service would also be looking to see if it could fold some stand-alone post offices into city halls or libraries, a move that is likely to cheer many small towns that have been pushing for such an alternative.
The financially struggling Postal Service, faces a deficit of between $8 billion and $9 billion this year, so it is looking to close "low activity" post offices and is planning "significant changes in the way our customers interact with the post office," Mr. Donahoe said.
Another company poised to benefit: United Parcel Service, Inc. The postal agency describes UPS as its biggest shipping competitor.
On Tuesday, UPS officials didn't seem upset about the post office closings.
"Anytime a competitor pulls back access, it's an opportunity," Kurt Kuehn, the company's chief financial officer, said in an earnings call. "Clearly, we will look at the gaps that are there."
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