The Australian Government owns Australia Post. Of its 4,474 outlets, 863 are government owned and operated. These PostShops don’t look like a post office. They look like a stationery / greeting card / services shop. In fact, many look like a newsagency. Except that newsagencies are privately owned and have been in the greeting card and stationery space decades more than Australia Post.
The current Federal Government has presided over Australia Post dramatically increasing its competition against small business newsagents. Not good credentials for a Government which claims to care about small business. Last week it was revealed that in the 2004/05 financial year Australia Post increased revenue in this area including stationery and greeting cards by 8.0%. Some of that increase will have been at a cost of small business newsagents.
Yesterday in (I estimate) tens of thousands of mail boxes Australia Post increased the pressure. It came in the form of a glossy eight page catalogue. This catalogue is promoting “big savings†on printer ink, computer printers, copy paper, printer toner, shredders, calculators, blank CDs, blank DVDs and phones. Not one postal item. Now their “big savings†are not that big for the items I checked. For example, we beat them on price for the toner, paper and blank CDs. Good I hear you say, that’s competition. True except that I do not have guaranteed traffic. I do not have any exclusive products or services in my shop. Australia Post has stamps and a range of postal related services. This guarantees foot traffic and while people are there in line down the middle of the store they are faced with all these products and posters saying “big savings†and, well, people being people they will think it’s a good deal.
This is my government promoting these “big savings†when newsagents near these post offices probably offer better prices like mine. But our voice is tiny compared to the might of the government owned Australia Post.
These Federal Government owned PostShops are trading off their exclusive and protected postal services traffic and reputation and turning into stationery and greeting card businesses. The only difference between their business and mine is that I have newspapers, magazines and lottery products. But hey, they have been chasing magazines so don’t think the current situation will last forever.
The move revealed over the weekend of Australia Post franchising some of its PostShops does not address the situation. The Federal Government is still profiting from competing against small businesses. They are still allowing the postal service well deserved and good name to be used to support the development of their general merchandise retail network.
This is a policy issue for the Government. The Government has no businesses owning these retail businesses.
Here’s what I want to happen: Australia Post to immediately stop its franchising moves; PostShop businesses to be put to tender for nearby similar small businesses to purchase and integrate with their businesses; the Government to exit the retail channel; Australia Post to focus on postal services and leave stationery, greeting card and other retail products and services to private enterprise.
I don’t hold much hope as the Government does not seem to care about small businesses.
Maybe the closure of some small businesses as a result of Australia Post competition will get them to take notice.