Diminishing letters, shop traffic weighs

down Australia Post

April 2024 Australia Post is contemplating down-sizing its retail network, as losses in its letter business continue to persist, due to changing consumer habits. In a statement this week, the company noted that the continuing structural decline of the letters business was not preventable, with the latest figures showing Australians now received two letters on average per week. Australia Post reported a 42 per cent increase in group profit before tax for the six months to December 31, driven by a record peak period with nearly 100 million parcels delivered. Despite this profit outcome, the company’s letters business reported a 182-million-dollar loss. With letter volumes dropping by approximately 12 per cent, Australia Post and the federal government are implementing reforms like the Post26 strategy, increasing the price of posting basic letters, as well as the expansion of banking and retail offerings. CEO Paul Graham acknowledged the need for downsizing the retail network due to fundamental structural challenges and declining foot traffic.

Greek Tribune Adelaide, South Australia