Australia Post is reportedly reconsidering the future of around 30 metropolitan branches, as pandemic-era habits and a turn to online solutions reduce foot traffic in built-up areas.
Nine News reports the postal and parcel carrier is conducting a formal review of its 4,000 physical locations nationwide, after the COVID-19 crisis reshaped how Australians deal with the government-owned business.
Responding to questions posed by Nine, an Australia Post spokesperson said a “small number” of post office sites are currently under review.
While some sites are under review for building damage or expiring leases, the spokesperson confirmed “very low and declining foot traffic” at some locations was cause for concern.
No hard and fast closure decisions have been made, the spokesperson said, while claiming any affected team members would be redeployed to nearby post offices.
Reports of Australia Post’s review comes just days after the release of a full-year financial report that detailed precisely how customers have changed their postage habits through 2022.
Australia Post reported group-wide profit before tax of $55.3 million for the financial year, nearly half of the $100.7 million it booked in the 2021 financial year.
Operating expenses across the group grew 9.2% over the financial year, driven by the ongoing workforce effects of the COVID-19 pandemic, and a reduction in available air freight space driving costs skywards.
The pandemic-era boom in online shopping saw parcel and services revenue increase 11% to an astonishing $7.2 billion, with Australia Post’s network parcel pick-up lockers — a contributor to lower foot traffic to some inner-city post offices — likely helping to drive that growth.
But managing director Paul Graham said that acceleration may slow in the months to come.
“While it’s clear more Australians are buying goods online following the pandemic, we don’t expect to see the same level of e-commerce growth,” he said.
“This has been demonstrated in our second-half results and, going forward, we anticipate growth to be moderate.”
Given the “significant financial headwinds” facing the sector, Australia Post is now “focusing on business efficiencies, while continuing to invest in our network and technology, to better meet the needs of our customers,” he added.
Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
