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!
Our Plan to !Preserve RuralPost Offices
May 9, 2012!
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Current Retail Locations!
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Alternate Access!
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39%
Retail Mix!
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27%drop-350millionfewervisitstoPOs!
Customer Visits to Post Offices!
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Average cost to operate: $114,000annually!Bottom 4,500 earn an average of$15,000 annually: equivalent to $52 and4.4 customer window visits per day!Cost to serve is increasing, revenue andvisits are decreasing !
Rural Post Offices!CLOSING THE COST GAP
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RisingcoststomaintainPostOffices!
88%ofruralPostOfficeslosingmoney!
Financialcrisis!
RuralcustomersdesiretopreservePostOffice!
Situation!USPScommitmenttoruralAmerica!
Achieving a Retail Balance!
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Customers
preference for moreconvenient access!
88% of rural PostOffices losing money!
Financial crisis!
Achieving a Retail Balance!
Solution!New
frameworkbased onfour options
for ruralPost Offices!
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Maintain! Maintain the Post Office with reducedretail window service hours to matchcustomer need!
Deliver!Provide delivery service using eitherrural carriers or highway contract
routes!
Engage! Engage a local establishment withinthe community to establish a VillagePost Office
!
Merge ! Merge with a nearby Post Office andprovide service from that location!
Need new photo
Four Paths for Rural Retail Access!
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Lobby and P.O. Box access!Modified window hours!Maintain ZIP Code !Retain community identity !
Maintaining Rural Post Offices!
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Key Learnings
46% would prefer closing Post
Office for alternate access
Rural Customer Survey Results!
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Analyzed 17,728 rural Post Offices!4,561 to remain at 8 hours of window service!Starting review process for approximately 13,000Post Offices!Upgrading 400 Post Offices from designatedclosure!Closing more than 100 non-operating Post Offices!
Rural Post Offices!
Rural Post Offices will remain open unlesscommunity has strong alternative preference!
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Two-year Process with Phased Approach!
2012! 2014!2013!
SEPTEMBER!Community meetingswith surveys begin!
Next Steps!
FALL 2014!Completion!
SEPTEMBER 2012 TO FALL 2014!Phased implementation
!END OF MAY!PRC filing
!90 Day !
PRC Review!
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Methodical process,two year transition!Options available forstaying with the PostalService!Incentive to be provided!
Rural Post Offices!OUR COMMITMENT TO EMPLOYEES
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Preserves rural Post Offices! Allows communities to retain identity
and ZIP Code!New PathForward
Postal Service will engagecommunities!
Will obtain local input before changesare made!
CommunityEngagement
Saves over half a billion dollars a year! Consistent with five-year plan! Helps return Postal Service to
financial stability!AchievesSavings
Conclusion!
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