(last updated September 2024)
What's happening in the Post Office sector
- The number of post office branches fell by almost half between the 1980s and 2010. However, the number of branches has remained fairly consistent since then at around 11,500.
- The Postal Services Bill, which received Royal Assent in June 2011, contained measures designed to protect the current network of around 11,500 branches, together with £1.34 billion of new funding.
- Demand for some traditional Post Office services fell as a result of benefits and allowances being paid direct into people's bank accounts and the increase in online bill payments.
- However, in addition to postal services, post offices offer access to banking services and cash, and certain government services.
- The Post Office and DVLA agreed a rolling extension to the Post Office contract from December 2023 so the Post Office can continue to offer DVLA services.
- The number of branches increased for the first time since 2014 between March 2022 and March 2023, driven by the continued closure of high street bank branches (an average of 50 per month have been closing) and the increasing ecommerce.
At the end of March 2023, there were: 9,411 standard agency branches (81% of the network), 1,924 outreach services (16% of the network), 232 drop & collect branches ( 2% of the network) and 117 Crown branches (1% of the network).
- The Post Office handled a record £3.77 billion in cash in July 2024 as many consumers revert to cash as a way of managing budgets. There were two consecutive record breaking months earlier in 2024 in April and May.
- More than 20 million people use Post Office services every week.
- There has been a significant increase in the number of outreach services offered by the Post Office since 2000, increasing from just 1% to 16%.
- The first Drop & Collect branches opened in late 2021 and they already accounted for 2% of the network by 2023. These focus on pre-paid parcels and bill payments.
- Over the last decade, the East of England has seen the greatest growth in the number of branches whilst Scotland has seen the biggest fall.
- Royal Mail has seen greater competition for their parcels business and click and collect services. However, many Post Office branches are now acting as pick up and drop off points for rival's parcels.
- The Post Office introduced a range of new services, such as banking services, bureau de change, travel insurance, financial services, Lottery tickets and scratch cards and so on. Customers can now access almost every UK bank account via the Post Office network.
- The Post Office has committed to helping the most vulnerable in society with a range of measures including the Post Office Payout voucher service which supports families with children entitled to free school meals. It's anticipated that the Post Office will make over one million cash payouts in 2024, up 30% year on year and up 170% over the past three years.
- Under the Post Office Transformation programme, new post office models were created so that it is easier for post offices to open for longer hours and on Sundays and to run post office business and retailing activities together. The new style post offices include Main Post Offices and Local Post Offices. There are also Community Post Office branches where the post office has been retained under the old model because it is the only outlet in a community.
- Most Local Post Offices are now run from a retail business, like a newsagent or convenience store.
When thinking about buying or opening a post office, you will have to decide whether:
- your retailing activities will be able to compete against other local retailers
- demand for post office services, and therefore the Post Office transaction fees, will be high enough in the area in which you propose to operate
- you're prepared to put in the longer hours needed to make the business a success
Keeping up to date with the Post Office sector
Joining a trade association is an excellent way of staying up to date. The National Federation of SubPostmasters represents the interests of sub-postmasters throughout the UK. The Federation produces a helpful fact sheet for those considering buying a post office and also publishes the bi-monthly journal The Subpostmaster which contains articles and features of interest to those operating in the sector. The Federation's website contains a great deal of useful information. They also run a free 24/7 helpline for members which can be contacted on 0800 389 0287.
Post Office Ltd produces information for prospective subpostmasters on their main website, including details of how to apply for an advertised post office online. The Post Office also provides information specially for subpostmasters on a dedicated website, One Post Office, as well as details of how to become a sub-postmaster on the Run a Post Office website.