Australia Post is facing significant losses due to the sharp decline in its letter delivery business, which cannot be offset by the growth of its digital commerce business.
CEO Paul Graham warned that the current performance standards, set under the 1989 Australian Postal Corporation Act, are no longer fit for purpose and called for changes to ensure the sustainability of the business.
The loss of foot traffic in post offices due to the declining letter volumes is having a catastrophic impact on the organisation. Graham has urged parliamentarians to put the national interest first when considering changes to support the viability of the business.
To boost foot traffic in regional post offices, Australia Post is trialling a new model called “community hub”, which includes a larger post office footprint and new format to serve customers in regional Australia. The hub offers local businesses a retail space within the post office and features such as parcel lockers.
