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U.S. Postal Service: Newly Designed Retail Store Revenues Exceed Operating Costs

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Report Type Reports and Testimonies
Report Date Feb. 4, 1994
Report No. GGD-94-85
Subject
Summary:

In response to customer complaints about long lines at post offices and the lack of self-service areas for stamps and other items, the U.S. Postal Service has opened 23 retail stores since 1989 and has plans to open 20 more in 1994. These retail stores offer the same services as found at traditional post offices but boast more business and communication services, such as fax, E-Mail, and word processing, provided by commercial parcel and retail mail services. Fourteen of the 16 retail stores that had been in operation for at least a year were profitable at the end of fiscal year 1993; overall revenues were 2.5 to 6 times greater than operating costs. Not enough data were available to estimate revenues and costs for the other two stores. New store locations are chosen on the basis of customer need and convenience--the same criteria used to select traditional post office sites.

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