What the Post Office’s New CEO Says About his Office Supply List
The Post Office is making some big changes to its office supply business.
The office supply company said Thursday that it will focus more on online sales and be more aggressive about providing its products directly to customers.CEO Kyle Dickson said the changes are aimed at increasing the number of customers that can purchase items directly from Postmaster General Keith Hoyer.
The new strategy is part of the Postmaster general’s larger effort to expand the mail business, which has been in a free fall since the 2008 financial crisis.
Dickson, who is also the CEO of the national carrier UPS, said the new strategy would allow the Post to expand its supply network more quickly, and also reduce costs for the business as it focuses on customer service and improving its quality.
“There’s always going to be challenges in the marketplace, but we’ve got to be strategic about it,” Dickson told analysts in a conference call Thursday.
“Our goal is to get the best products, the best service and be able to deliver them to customers in a timely fashion.”
Dickson said he expects the new office supply strategy to reduce costs and increase sales.
The company said the strategy will cost about $3 billion a year.
The new strategy comes at a time when the company is facing an unprecedented level of competition in the mail delivery market.
UPS, for instance, is offering its own products directly from the Post and is launching a mail service that will compete with FedEx’s own delivery service, which is based in Virginia.
As a result, Postmaster has faced a steady decline in revenue and stock price, and it lost its share of market share in the market for parcel delivery in 2015.
The company has been losing money for years.
It reported $8.5 billion in revenue in 2017 and lost $4.4 billion last year.
The company said in its quarterly earnings call earlier this year that the post office has $5.5 million in cash and $8 billion in market value.
The Post is facing growing pressure from Amazon, which recently opened a distribution center in Kentucky.
It said that it has a distribution network in 10 states and that it expects to reach nearly a million customers by 2023.