Modernising the Post Office network
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Modernising the Post Office network Designed by AB Publishing
P O ST O F F I C E LT D
IS EMBARKING ON AN
E XC I T I N G T R A N S F O R M AT I O N
he £1.34 billion support and of their communities throughout the UK.
investment package from the In November last year we gave subpostmasters
Government is the largest in the chance to complete a survey to tell us
T Post Office Ltd’s history.
It will see up to 6,000
whether they would be interested in converting
to a new model; would be interested in leaving;
branches converted into new, or wanted to stay as they are.
more modern formats over If a subpostmaster indicates they would like to
the next three years. There is no programme of leave, this may be possible but only if, following
branch closures. local consultation, we can relocate the branch to
At the heart of our modernisation plan are two a suitable alternative operator and premises
new models. nearby, thereby maintaining a Post Office branch
+ The main model will see many of our larger in that community.
branches refreshed with open plan counters, new There has been an encouraging response
technology such as assisted self-service, longer and we have started to assess whether
opening hours and special services for small subpostmasters who want to convert or
businesses. leave meet our criteria for this.
+ The local model will see Post Office services Sitting alongside the modernisation of the
offered on the retail counter, rather than from a network are our ambitious plans to bring new
dedicated Post Office counter. The local model is business to the Post Office network.
more economical for subpostmasters to run and Establishing the Post Office network as a front
usually means services are available for much office for both local and national government is
longer hours. one of our key aims. The public already see Post
We already have more than 200 main and local Office branches as a natural place to go for these
branches in operation across the UK and feedback services. Our trusted reputation and unrivalled
has been extremely positive. We are currently infrastructure mean we are ideally placed to
undertaking a thorough piloting phase with these provide both a personal and high tech interface
branches to review all aspects of the models. between the public and government.
Customers and operators alike have welcomed A commercial agreement announced between
both new models with satisfaction levels at local Post Office Ltd and Royal Mail in January 2012
branches at 96 per cent according to independent ensures that Royal Mail products will be available
research and at 93 per cent for main branches. at branches across the UK for the long-term.
Our subpostmasters are using the opportunity to And Post Office Ltd continues to develop its
move their businesses forward with many reporting range of financial services products, offering
an uplift in their retail sales and increasing their attractive and accessible services to customers
number of Post Office customer visits. such as cash withdrawals, insurance, mortgage
Following the pilots, Post Office Ltd expects up and savings products.
to 4,000 branches to become mains and around We hope this publication provides a useful
2,000 branches to become locals over the next insight into our plans to make the Post Office
three years. The remainder of the Post Office network more sustainable into the future and
network, around 5,500 branches, will stay in its how our new-look branch operating models will
current format and will continue to be a vital part benefit customers across the UK.
2
MAIN POST OFFICE
+ Main branches have a bright and more modern environment with the
opportunity for open-plan counter positions.
+ They are likely to be the larger and busier of our branches typically
with at least two counter positions open more or less constantly
throughout the week.
+ The model offers an extensive range of Post Office products and services,
including Motor Vehicle Licensing, Passport Check & Send, Bureau on
Demand, and often more complex Government services work such as our
biometric data capture technology known as Application, Enrolment and
Identity (AEI).
+ Some branches will benefit from new assisted self-service technologies
such as Post & Go machines.
+ With the addition of a Post Office service point at the retail counter,
customers can access many Post Office services while paying for their retail
items over longer opening hours.
+ The increase in longer opening hours, coupled with comprehensive sales
training programmes, gives subpostmasters the potential to increase Post
Office sales.
+ Many of our main branches have been open for less than a year and are
already reporting increases in customer visits averaging out at over 4 per
cent across all main branches.
+ Independent research carried out at main branches has shown that
93 per cent of people were satisfied with their overall experience.
+ This increasing Post Office customer base also has the potential to
grow the retail business. Where a main model has been established in new
sites, operators are reporting increases in retail turnover of more than
8 per cent on average.
+ Investment and modernisation helps retain Post Office services at the
Fiona Griffiths is
heart of the community.
enjoying the benefits
of the main model at
Blackwood Post Office
in Gwent, Wales
4 5
THE MAIN VIEW: POST OFFICE HAS OVER 25 MAIN Customers are
reacting positively
BRANCHES ALREADY IN OPERATION DELIVERING BENEFITS to open plan counters
TO THEIR CUSTOMERS AND COMMUNITIES. HERE’S A at Falmouth branch
in Cornwall.
LOOK AT HOW THEY ARE MAKING A DIFFERENCE.
BRANCH: FALMOUTH, conversations.
CORNWALL MODEL: MAIN He said: “It’s a very friendly
and welcoming environment for
OPERATOR: ANDREW DASH people who are traditionally used
RETAIL: CONVENIENCE to talking through a screen. We
STORE still have the fortress positions
for things like travel money sales
any new and existing but people can now interact
M customers are more with the team.
making the most “Our customers are fond of
of Falmouth branch this open arrangement as it
in Cornwall. makes it easier to have a chat
And it’s local students with someone over the counter.”
that operator Andrew Dash The service position on the
believes are one of the biggest retail counter is another key
growing groups, who are taking feature for Andrew who says it
advantage of longer opening offers him greater flexibility for
hours. his business.
He said: “Students have “Customers like it as they soon
always come in here to make realise they can pop to the retail till.
use of our retail side and pick It’s quicker and more convenient
up groceries, but now they are for people who just want to carry
starting to realise what Post out simple transactions during our
Office has to offer. core hours.”
IT’S QUICKER AND MORE CONVENIENT FOR PEOPLE
WHO JUST WANT TO CARRY OUT SIMPLE
TRANSACTIONS DURING OUR CORE HOURS
“They can come in here Andrew added: “We’ve had to
outside of traditional Post Office introduce customers to the idea
opening hours and pick up of AEI and how they can renew
stamps or post items back to their driving licences on the spot
their families or friends.” – it’s gone down very well and
Falmouth branch currently I’m sure will lead more people
has three counter positions in an to the branch as word spreads.
open plan area, as well as two It’s a great piece of equipment
counters behind a fortress screen and demonstrates the forward-
and one on the retail counter. thinking that this business is
Andrew believes customers capable of.”
have reacted particularly
well to the open plan
environment, which gives
staff a greater chance to
hold more meaningful
6 7
BRANCH: BARRAS BRIDGE, NEWCASTLE
MODEL: MAIN
OPERATOR: IAN MIDDLEMISS AT A
RETAIL: CONVENIENCE STORE GLANCE
AT A GLANCE
usiness customers are flocking to Barras
Bridge branch to make use of its new
B
range of products and services. BRANCH:
The branch is now open from 6.30am FARRINGDON,
to 9pm throughout the week giving local business LONDON MODEL:
people much more opportunity to visit the Post Office MAIN OPERATOR:
branch. SANDRA GAMMAGE
Operator Ian Middlemiss said: “We get people from the RETAIL: SMALL
RETAIL
local pubs and other small businesses in the community
coming in here now to deposit cash. It’s a section of the SANDRA SAID:
market that’s definitely growing for us.” “We offer a wide
Barras Bridge adopted the main model and opened for range of services at
business in July last year. a bustling inner-city
The premises has 1,200 sq ft of floor space with a third location. The reaction
of that taken up by Post Office counters and equipment. from customers has
Ian said: “This is a bustling community and our retail been amazing. It has
business has always been popular with people. opened their eyes
“But this new-look Post Office offer has driven footfall to what Post Office
to the branch. The reaction we had when we opened in can offer. We have
the summer was extremely positive. a dedicated travel
money counter and
THIS IS A BUSTLING COMMUNITY AND our travel money
sales have gone
OUR RETAIL BUSINESS HAS ALWAYS up by as much as
50 per cent.”
BEEN POPULAR WITH PEOPLE
“We have an open plan area and three fortress BRANCH:
positions as well as a further Horizon terminal on the CROSSHILL,
retail side. At the moment, five of our team are trained GLASGOW
to operate it, although I wouldn’t rule out more joining MODEL: MAIN
that list – it gives us greater flexibility when it comes to OPERATOR: MONA
KHAN RETAIL:
staffing.”
NEWSAGENTS
Ian is delighted with how his retail business has
integrated with the Post Office and is optimistic for the MONA SAID:
future. “We’re based in
He said: “It’s great for people to have everything they a busy part of
need under one roof, and we offer a very flexible service. town and compete
“Being open for longer hours means customers can with a lot of High
come in early in the morning or later in the evening, Street names. The
meaning volumes are spread across the day. We’ve had customers love
a great start and I’m looking forward to seeing what the the format and the
future holds.” Barras Bridge branch ability to open for
in Newcastle is winning longer hours has
new business from been very popular
community with the and good for
main model. business.”
9
Post Office local
Ash Vale Post Office, Aldershot
Post Office main
Falmouth Post Office, Cornwall
10 11
LOCAL POST OFFICE
+ In local branches, the Post Office counter is moved to the retail position – where
customers will benefit from a brighter, more modern retail experience and often
longer opening hours.
+ Branches more suitable to the local model are likely to be those that have no
more than two counter positions, and where the second position is not fully used
throughout the week.
+ In like-for-like terms, Post Office branches operating under the local model
will be able to carry out the transactions that account for around 95 per cent of
customer visits throughout the Post Office network. The model is designed to
be used for automated transactions, making it quick and easy for retail staff to
operate and helping to keep customer queuing times to a minimum.
+ As currently happens, some more specialised services, such as the Passport
application checking service, will only be available at selected branches in the
network.
+ Removing the dedicated counter and security screen frees up space for the
retailer, which gives them a greater opportunity to increase retail sales – up to
25 per cent in some pilot branches.
+ The local model is designed to be operated by retail assistants, rather than
dedicated Post Office staff, which increases efficiency and can lead to significant
savings for subpostmasters.
+ Investment from Post Office Ltd in local branches will help create a new more
modern environment for subpostmasters, their staff and customers – and help
retain Post Office services at the heart of the community.
+ Independent research carried out in November last year with more than 1,200
customers at 25 local branches produced some extremely encouraging results.
+ 96 per cent of people were satisfied with the level of customer service and the
research also shows high levels of satisfaction with waiting times.
+ Our own research shows that, in the local branches that have been open for more Naimesh (right)
than a year, the average increase in Post Office customer visits is almost 9 per cent. and Bhavisha
Patel believe the
local model is
+ In local branches, on average 22 per cent of our customers are accessing Post working well for
Office services outside traditional hours. their West End,
Woking, branch.
12 13
13
Mark Hayward from Yatton THE LOCAL VIEW: POST OFFICE LTD HAS OVER 170
Keynell branch, Wiltshire, believes
the local model has helped his LOCAL BRANCHES IN OPERATION ACROSS THE UK,
business attract new customers.
PROVIDING REAL BENEFITS TO CUSTOMERS AND
SUBPOSTMASTERS ALIKE. HERE’S A LOOK AT THE
IMPACT SOME OF OUR LOCAL BRANCHES ARE HAVING.
BRANCH: YATTON KEYNELL, WILTSHIRE
MODEL: LOCAL
OPERATOR: MARK HAYWARD
RETAIL: VILLAGE STORE
atton Keynell branch has seen significant changes
in recent years as Mark Hayward and his team have
Y
worked tirelessly to provide villagers with the shop
and Post Office branch they deserve.
Since taking over the business, Mark has refurbished the
store, giving it a new lease of life and a more modern interior.
He believes the local model has been the perfect fit for his
business and is delighted with the response from customers too.
“We had to do a lot to bring this store up to standard
when we first arrived a few years ago,” said Mark, who also
runs the village pub.
I’M REALLY HAPPY WITH THE FORMAT OF
OUR BRANCH – I COULDN’T IMAGINE HAVING
A FORTRESS POSITION IN HERE NOW
“There is demand for a village shop here as we’re based in
the heart of the community with small businesses around us
and near the local school.
“Having a local has opened us up to a whole new range of
customers too.”
Post Office services are now available to customers from
7am to 6pm from Monday to Saturday and from 8am to
noon on Sundays.
Mark said: “People are thrilled to be able to make use of
the Post Office services early in the morning before our peak
periods – and we get eBay customers through the doors on
Sundays too.
“I’m really happy with the format of our branch – I couldn’t
imagine having a fortress position in here now.
“It’s open and friendly and customers like the fact that
they can use the Post Office at the retail till. For me, it’s a
sign that Post Office is moving with the times.”
BRANCH: ASH VALE, ALDERSHOT
MODEL: LOCAL
OPERATOR: MICHAEL DUFFY AT A
RETAIL: CONVENIENCE STORE GLANCE
AT A GLANCE
uilding a community feel has
been high on the agenda for
B Michael Duffy and his team at BRANCH:
Ash Vale branch in Aldershot. CRAIGENS, AYRSHIRE
From 7am every day, this busy branch MODEL: LOCAL
offers an essential service until closing OPERATOR: RIFIAT
time – 9pm on weekdays, on Saturdays BIBI RETAIL:
8pm and on Sunday at 4pm. NEWSAGENTS
The longer opening hours have been RIFIAT SAID:
a real hit with customers and that’s “Our customers love
important to Michael who values his the longer opening
relationships with people in the village. hours and it’s had
He said: “I run a family firm here so a great impact
we try to really take care of every single on our business.
person who walks through the door. We have a bigger
“Being able to open up Post Office average basket spend
services earlier has given some of our here now and the
older customers a chance to come in and turnover is up by
visit us before the mums and dads rush in about 25 per cent.”
before school.
“We also get lots of people coming in
after work, which means queues are more BRANCH: WEST
manageable at lunchtime. We’re able to END, WOKING
dedicate more time to people at different MODEL: LOCAL
times of the day, which is a huge benefit of OPERATOR:
this local model.” NAIMESH PATEL
RETAIL:
VILLAGE STORE
WE ALSO GET LOTS OF PEOPLE COMING IN NAIMESH SAID:
AFTER WORK, WHICH MEANS QUEUES ARE “We have a
modestly-sized
MORE MANAGEABLE AT LUNCHTIME
village shop so
the local model is
perfect for us as it
Pensioners and regular customers John saves space. In our
and Anita Kirk are happy to have their experience, people
postal services and shopping all rolled into choose to come
one. here because of the
“It’s great for us as we don’t have to convenience offered
travel all the way into town now for our by the longer
shopping and Post Office services,” said opening hours. It’s a
John. “It’s a very convenient option and very efficient model
we really appreciate the warm and friendly The local model is in terms of staffing
proving to be a requirements and
welcome we get every time we come in.”
success at Ash Vale we’re delighted
branch in Aldershot. with it.”
16 17
SECURING
NEW BUSINESS
n addition to converting government departments. Already installed
branches to main and local in over 750 branches and carrying out
I models, the other major part application work on behalf of DVLA and
of our strategy is to bring new UKBA, over one million transactions have
business into the network. Increasing the now been carried out using this technology.
work we do on behalf of national and local
government, and continuing to develop Post Office Ltd is also ideally placed to offer
our financial services and mails business, identity verification, payment services, and
will drive footfall into branches and ensure assisted digital services for those not online.
the Post Office network is relevant to
communities in today’s digital world. It will DEVELOPING FINANCIAL SERVICES
help subpostmasters run more successful BUSINESS
businesses and reduce the need for As a trusted alternative to traditional
taxpayers to subsidise parts of the network. banks, Post Office Ltd continues to grow its
presence in the financial services market.
A FRONT OFFICE FOR GOVERNMENT Customers visit Post Office branches for
Post Office Ltd is increasingly becoming a foreign currency; business banking; cash
front office for local and national government. withdrawals and a wide range of insurance,
With a long tradition of providing services mortgage and savings products.
on behalf of government, Post Office Ltd
is providing innovative solutions for service Post Office Ltd will continue to develop
delivery that support the Government’s attractive and accessible financial services
channel shift and digital by default agendas. products that meet the needs of customers
It is winning new business based on price, across our society and bring new business
access, innovative technology and the into the network.
customer experience.
UK’S NUMBER ONE MAILS RETAILER
A prime example of this is its The recent announcement of a commercial
biometric equipment capable agreement between Post Office Ltd and Royal
of capturing photographs, Mail ensures that Royal Mail products will
fingerprints and continue to be available at Post Office branches
signatures and throughout the country for the long term. This
transferring them is great news for the millions of customers
electronically and who visit our branches each day.
securely to
Post Office Ltd is the number one mails
retailer in the UK, and we are determined
to keep that position by continuing to offer
unrivalled access, customer service, and by
working closely with Royal Mail to develop
the products that meet the needs of today’s
customers.
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