Station and Branch Consolidation Initiative Update

The Postal Service has updated the list of retail stations and branches that remain under review for possible consolidation, with only 162 offices still under review.

The list issued Jan. 29 updates a review process begun last summer that initially examined about 3,300 stations and branches in urban and suburban areas across the country. The process is focusing on facilities located relatively close to each other where consolidations might be feasible without compromising customer access to postal services. As part of the consolidation process, the Postal Service has filed periodic updates with the Postal Regulatory Commission identifying the retail stations and branches that remain under consideration. The filing does not represent a final decision on consolidation. To date, no facility-specific final decisions have been made as a result of this initiative.

Mags See Newsstand Woes Waning

Finally, some good news for magazines—sort of. After a punishing first half on the newsstand, many of the industry’s biggest newsstand sellers saw sales declines ease in the second half of 2009. It’s a shot of welcome news for the industry, which saw single-copy sales plunge 12.4 percent in the first six months of the year. Those results were partly affected by a disruption in the wholesaler delivery chain that led to delays in getting issues to stores. Broad economic troubles also were blamed for a decline in single-copy sales. Source: Mediaweek

Five-Day Mail Delivery Awaiting Advisory Opinion

What’s the status of the much-hyped five-day mail delivery proposal raised a year ago by Postmaster General John E. Potter? The Postal Regulatory Commission is waiting for the U.S. Postal Service to request an advisory opinion, says PRC chairman Ruth Goldway. During an advisory opinion process, the PRC conducts an on-the-record, public inquiry into the Postal Service’s proposal and provide a forum for all interested parties to participate. “This process will provide transparence and accountability for the Postal Service’s plans and allow any concerns, issues and questions to be surfaced and addressed,” Goldway explains.

What’s more, she says, the advisory opinion process helps ensure that changes are in compliance with statutory requirements for maintaining effective mail service. “The record established through the advisory opinion process should also be valuable to the Congress in making any decision to modify or continue the existing restrictions,” Goldway says.

Federal law has mandated a six-day mail delivery schedule since 1983, so even after the advisory opinion process, Congress still needs to lift the restriction before five-day mail delivery could happen. Congress can do this at any time if it deems it serves the best interest of the nation and postal customers to do so, Goldway says.

The timing for filing a request for an advisory opinion is strictly up to the Postal Service. USPS spokesperson Gerry McKiernan says an internal study group is working on the benefits of five-day mail delivery and plans to request an advisory opinion, but the group is unsure when exactly this will happen.

Does Goldway believe five-day mail delivery will be a reality? She won’t say, but notes that “tough decisions will need to be made going forward, and all practical ideas should be considered.”

Five-day delivery is just one idea, she says: “We need to look at all ideas and look for solutions that best address Postal Service difficulties while also preserving a maximum amount of effective postal service for American citizens and businesses.” Source: Multichannel Merchant

Postal Service Continues Streak of Losses

The U.S. Postal Service posted a loss of $297 million for the first quarter of its fiscal year, blaming the recession and the use of electronic mail.

The loss marked a slight improvement over the prior-year period due to cost cutting, but the Postal Service warned the continued negative trend "raises significant uncertainty" about its ability to generate enough cash to meet large payment obligations later this year.

"Unfortunately, economic drivers that significantly affect mail volumes, such as continuing high unemployment levels and lower investments, appear to be lagging general economic recovery," said Joseph Corbett, chief financial officer and executive vice president, in a statement.

The Postal Service, which delivers nearly half of the world's mail, has posted net losses since 2007.

The first quarter of its fiscal year, which ends Dec. 31, is typically the strongest quarter for the Postal Service because of seasonal business and holiday mailings.

Further, the Postal Service warned it may not be able to meet obligations to make substantial cash payments in September and October 2010.

The Post Service is due to make payments of about $6.6 billion to prefund retiree health benefits and for its workers' compensation liability.

Last year Congress restructured similar payments, but there is not assurance that similar adjustments will be made this year, the Postal Service said. Source: Reuters / USPS Press Release