Australia Post got a fair bit of news coverage yesterday. Chairman David Mortimer and new CEO Ahmed Fahour Check were widely quoted talking up their retail network and the rest of the business. Having read many of the reports, one is left with no doubt that Australia Post is on the move, hunting down more business.
While the stories talk about electronic business, fixing the queues in their stores and chasing revenue from superannuation business, I have no doubt that they will continue pursue revenue currently the domain of newsagents.
The stories also made it clear that regardless of who wins the federal election, Australia Post will not be privatised.
Over the last ten years, Australia Post’s 860 (or so) corporate stores have pursued Australia’s family owned newsagencies. They have directly targeted our customers by moving deeper into non postal related products of greeting cards, stationery and books. They do this on the back of a government nurtured and protected brand. Their monopoly gives them a lower cost of entry into new areas of business.
Politicians say that Australia Post is a best practice model. I don’t think so. They have no competition for mail. In the EU, best practice is considered genuine competition for mail services. Also in EU countries I have visited, the retail post offices are, well, post offices and not general stores like Australia Post operates today.
I would like to see newsagent representatives target the government ownership of the retail channel. If we sit back as we have for the last ten years it will be only a matter of time before they have more of our product categories.
Check out the story in the Sydney Morning Herald and the story in The Australian.