U.S. Postal Service:

Newly Designed Retail Store Revenues Exceed Operating Costs

GGD-94-85: Published: Feb 4, 1994. Publicly Released: Feb 4, 1994.

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Pursuant to a congressional request, GAO reviewed: (1) whether the U.S. Postal Service retail stores recover their operating costs; (2) whether the stores offer any services not customarily offered in regular post offices; and (3) what procedures and criteria the Postal Service has established for siting the stores.

GAO found that: (1) 14 of the 16 retail stores reported annual gross revenues that were 2.5 to 6 times greater than operating costs in fiscal year 1993; (2) the Postal Service's retail stores offer the same services as those offered by traditional post offices; (3) the retail stores do not offer many of the business and communication services that are provided by private-sector establishments, such as electronic mail messaging; (4) the differences between traditional post offices and the new retail stores are only in physical layout and appearance; and (5) the Postal Service's procedures and criteria for selecting new store locations are based on customer need and convenience and are the same as those used in selecting sites for traditional post offices.

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