National courier, Australia Post, is adapting its retail strategy as mail volumes fall sharply.<\/p>\n
Australia Post has reaffirmed its commitment to maintaining a national retail network of at least 4,000 outlets while warning that declining mail volumes and changing consumer behaviour are placing increasing pressure on the long-term sustainability of post offices across Australia.<\/p>\n
Speaking at a Senate Inquiry in September 2026, Australia Post Group CEO and Managing Director, Paul Graham, said the organisation currently operates 4,100 retail outlets, with Licensed Post Offices accounting for around 65 per cent of the network.<\/p>\n
Graham said Australia Post had invested nearly $400 million in its retail network during the past four years, including a new point-of-sale system, outlet upgrades and new cash and counter technology.<\/p>\n
\u201cOver the past four years, we have invested almost $400 million in our retail network, including a new point of sale system, outlet upgrades, new cash and counter technology to better support our team and customers,\u201d he said.<\/p>\n
Australia Post said its traditional letters business continues to decline rapidly, with mail volumes now at levels last seen in the 1930s. The company expects that trend to accelerate as digital alternatives increasingly replace physical mail.<\/p>\n
At the same time, Australia Post said shifting consumer habits and lower transaction volumes are creating challenges for many Licensed Post Offices, particularly in regional communities where outlets remain an important access point for banking and government services.<\/p>\n
Graham said the organisation had recently renegotiated its Bank@Post agreements to ensure the service remains commercially viable for both Australia Post and its licensees.<\/p>\n
\u201cAustralians have made a dramatic shift towards online banking,\u201d he said. \u201cHowever, there is still a need for access to physical banking, particularly in vulnerable communities and regional areas.\u201d<\/p>\n
Australia Post is currently consulting with licensees on proposed changes to remuneration arrangements, with the aim of providing operators with more sustainable income models and greater rewards for performance.<\/p>\n
\u201cIt is because of these market forces and the changing nature of consumers that we have been working closely and engaging with our Licensee partners on updating Licensee agreements and frameworks that have remained largely unchanged for many decades,\u201d said Graham.<\/p>\n
While acknowledging differing views among stakeholders, Graham said the priority remained protecting the long-term viability of the national network.<\/p>\n
\u201cOur collective goal must be the sustainability of the network and the continuation of important community services,\u201d he said.<\/p>\n