Australia Post Annual Report 2008–09

Core businesses
Agency services &
retail merchandise
Highlights of 2008–09
Our people continue to serve
around a million customers
every business day in our
4,433 retail outlets.
Despite challenging economic
conditions, revenue from the
portfolio increased by 3.2 per cent.
Building on our trusted position in
identity services, we became the
first external entity to process
British passport applications.
In April 2009, we sold our
millionth gift card, a highly
successful product offering
introduced in 2007.
In cities and towns across the nation, our retail outlets continue to be
focal points for the community and, in many cases, significant heritage
icons. Over the past 200 years, our retail network, products and services have
continuously evolved to meet changing consumer needs. Today, our growing
range of agency services provides a vital and convenient connection between
customers, businesses, government agencies and financial institutions.
Our place in the market
Australia Post’s thousands of retail outlets continue to form the largest physical retail network
in the nation. According to the community service obligations mandated under the Australian
Postal Corporation Act 1989 (Cwlth), we are required to maintain a minimum of 4,000 retail
outlets, including 2,500 in rural and remote areas. Once again, we have exceeded that
requirement, with a total of 4,433 retail outlets, including 2,541 in rural and remote Australia.
Australia Post outlets have traditionally been the place where consumers can access letter and
parcel services. However, they also offer an extensive range of complementary products and
services: identity services, such as passport applications; financial services, including bill payments,
agency banking and money transfers; and a range of retail merchandise such as packaging.
Our main goal is to maximise returns from our existing products and services while
repositioning ourselves to deliver future sustainable growth. This is being achieved by:
• making existing products and services more relevant while also developing new,
complementary offerings
• reducing costs
• continually improving customer service.
Our business partners
Licensed post offices (LPOs) continue to play a major role in connecting with our customers,
as they comprise two-thirds of our total retail network. As at 30 June 2009, we had 2,941
LPOs contributing 40 per cent of total agency services and retail merchandise revenue
in the physical channel.
Each LPO is an independently run small business playing an important economic role in the
local community. Central to Australia Post’s ongoing communication with our licensees is
the Licensee Advisory Council (LAC), which was established in 2002. This forum provides an
opportunity for licensees to participate in decision-making related to matters affecting both
them and Australia Post, such as marketing, advertising and new product development.
Directors for the one national council and six state councils are elected by licensees and
appointed by Australia Post management. They meet up to six times a year.
Our newest partners in the retail network are franchisees, who operated 28 outlets
as at 30 June 2009.
Australia Post Annual Report 2008–09 | Report of operations 23