Retail post offices across the world have faced a series of challenges, not least the financial implications. However the nature of the ‘sub post office’ and its role in the cultural fabric cannot be a solely financial decision-making process.
Technology has become the key driver of changing customer habits, which has led to a refocus of post offices to define their future role.
• Financial (growing losses)
• Declining business (revenue losses)
• Changing customer habits (technology driven)
• Regulatory obligations (provision of the USO)
• Competition in the Postal Market (better access to products)
It was clear that the macro factors, combined with the employment cost, made this a non-sustainable model; Triangle were engaged to investigate other models internationally – some authorities have moved into the banking sector and integrated their retail, or sub post office networks into this sector, claiming them now to be a viable asset. Others, in larger countries have moved to “licensing” agents to provide counter services within their stores in more remote areas. Some have made a radical rationalisation of the size of the network. The research clearly indicated that the approach chosen was dependent on Universal Service Obligations, size and geography of the country, economic and trading environments and appetite for change. In essence there was no “one size” solution that fitted all.
Triangle worked with Jersey Post to develop some parameters for a future strategy with a number of different options and approaches to be considered, each tested and validated against a set of key criteria which would measure the “success” of any future strategy. These success criteria were carefully developed based on the pressures on Jersey Post as a result of its status as a government owned entity, its legal obligations, the political and economic climate and, importantly, its customers changing habits.
The resulting future model that achieved the best balance across all of these criteria is the Improved Customer Access (ICA) model which, in essence, removes the traditional counter altogether and replaces it with greater access for customers, delivered through different channels such as normal “retailer” counters or checkouts, automated kiosks, Parish Hall counters and on-line, directly into consumers homes. It provides customers with more choice as to where they transact particular types of postal or agency business, greater convenience from avoiding queues for a particular product, to doing business in their own home. It keeps the postal “Product” brand alive and significantly reduces costs.
The next stage, once this radical future strategy is approved, is the actual implementation plan which will probably be spread over five years, and will almost certainly require some investment by the Board. This could be for the development and purchase of new technology, transitional subsidy payments to Postmasters, or potential staff redundancy payments.
Whichever way, there is an exciting future for retail outlets in Jersey based on a well researched and innovative new strategy for the future.
