APPENDIX 11
Supplementary memorandum by Postwatch
1. INTRODUCTION
1.1 Postwatch gave oral evidence to the
Trade and Industry Committee on 16 November 2004. Since that time
MORI has delivered its preliminary results on its comparison between
directly-managed and franchised Post Offices.
Postwatch and Postcomm have jointly commissioned
this research, and believe that the findings are material to the
Trade and Industry Committee's inquiry into the Crown post office
network.
1.2 This memorandum also offers further
information on two areas explored during Postwatch's oral evidence:
a suitable framework for defining a "core location",
and outlining the Government's response to concerns raised by
Postwatch.
2. RESEARCH INTO
QUALITY OF
SERVICE—KEY
FINDINGS
2.1 Queues are generally longer at directly-managed
branches. However, these branches perform better in all other
aspects of customer service (see Annex 1). For example:
— Directly-managed branches are better
laid out, and information is more clearly presented than at franchised
post offices (FPOs).
— Staff at directly-managed branches
are better at probing customers for information in order to advise
on appropriate services than staff at FPOs.
— Customers with disabilities will
find directly-managed branches more accessible than FPOs.
2.2 Improvements can be made across both
networks, to the benefit of both customers and Post Office Ltd.
There are three areas of the research that are pertinent to the
questions posed by the Trade and Industry Committee on 16 November,
which they may like to seek clarification on with Post Office
Ltd.
— On average only 60% of counter positions,
in the sample of 302 directly-managed and franchised urban post
offices, were open and manned—only one office had a "queue
host". Some branches require the remaining positions for
use at peak times, but could space be utilised in a more efficient
way at others?
— Post Office Ltd requires franchisees
to sign minimum level service standards, but the findings show
that there is a significant gap between the performance of FPOs
and that of directly-managed branches. What are these standards,
how are franchisees' standards of service monitored and managed,
and how rigorously does Post Office Ltd enforce its standards
where shortcomings are identified?
— In total, the mystery shoppers spent
£510 on sending packages. If post office customer advisors
had elicited all the correct information from mystery shoppers,
and sold the most appropriate products on each occasion, the mystery
shoppers would have spent £1,020. Customers may be spending
less as a result, but they are not getting the service that would
best suit their needs or protect their interests in the event
of a complaint. What are the implications of this finding on Post
Office Ltd's finances and on the introduction of new financial
products with more rigorous requirements for probity?
2.3 The full research will be available
in December 2004. A copy will be sent to the Committee on its
completion.
3. WHAT IS
A CORE
LOCATION?
3.1 Postwatch has indicated both in its
written and oral evidence that it believes an obligation should
be placed on Post Office Ltd to retain branches in core locations.
The Committee asked for clarification of what Postwatch views
as a core location.
3.2 Essentially we mean high streets. They
are accessible to all due to good transport connections, their
location alongside centres for retail, work and social activities
and therefore they attract high footfall. The distance to alternative
post offices and the size and type of these offices is also relevant.
3.3 Such an obligation would be in line
with the Office of the Deputy Prime Minister's planning policy
(PPG6) to promote retail and leisure development in town centres.
It makes sense for both the customer, the environment and for
local economies for post offices to remain in UK high streets.
3.4 During the Urban Reinvention programme,
local authorities have raised concerns with Postwatch that proposed
closures clash with this policy. It appears that it would be sensible
to align core locations with the Government's existing planning
guidelines.
3.5 The rising price of property coupled
with the falling number of transactions means that primary retail
space may no longer be affordable for Post Office Ltd or its franchise
partners. Rather than deserting High Streets altogether, Post
Office Ltd should seek relocation to "edge-of-centre"
or secondary frontage locations as defined in the ODPM's consultation
on PPG6 (Annex 2).
3.6 The Committee expressed an interest
in gaps left in the post office network in urban deprived areas.
The definition of a core location in line with PPG6 should apply
equally to all town centres. Postwatch is not aware of any gaps
left in the network by directly-managed branch closures in such
areas, although closures in areas such as Notting Hill and Bradford
will undoubtedly affect the residents of such communities. Postwatch
would also welcome the continuation of the obligation on Post
Office Ltd not to close branches in urban deprived areas without
an alternative within half a mile unless there are exceptional
circumstances.
4. GOVERNMENT
RESPONSES TO
OUR CONCERNS
4.1 The committee also expressed an interest
in how the Government has met Postwatch's concerns about individual
closures and the wider consultation process.
4.2 Responses to Postwatch by the Minister
and the DTI are very similar to those received by MPs raising
concerns in parliament. The Government views decisions on individual
closures and the consultation process as an operational matter
for Post Office Ltd.
4.3 Postwatch is concerned that leaving
Post Office Ltd to operate on a purely commercial basis could
leave gaps in the network. Whilst Postwatch will continue to campaign
on behalf of the consumer, without an enforced social obligation
on Post Office Ltd (with recognition of the cost that this could
incur) Post Office Ltd management's priority is to meet the financial
needs of its sole shareholder, the Government.
Annex 1
COMPARISON BETWEEN DIRECTLY-MANAGED AND FRANCHISE
POST OFFICES (from MORI research for Postwatch and Postcomm, November
2004)
Research was undertaken by mystery shopping
visits to a sample of 302 directly-managed and franchised urban
post offices across the UK (from a total of approximately 1,200).
All visits took place between 18 and 28 October 2004 and were
started before 2pm.
Data has been subsequently weighted by region
and type of post office to reflect the national profile of urban
post offices.
| Directly Managed
Post Offices
(Base: 152)
| Franchised
Post Offices
(Base: 150)
|
| Layout and Displays |
| |
| Opening times displayed externally | 91%
| 76% |
| Proportion of customers queuing over 5 minutes
| 25% | 20% |
| Post offices deemed to be tidy internally. |
85% | 74% |
| Displaying information on banking services internally
| 88% | 67% |
| Displayed no customer service contact details
| 31% | 39% |
| Advice and Sales | |
|
| Did customer advisor probe for additional information to recommend appropriate service?
| 63% | 36% |
| Did the customer adviser ask whether the item was urgent?
| 46% | 23% |
| Did the customer adviser ask whether the item was valuable?
| 68% | 37% |
| Proportion of occasions when most suitable product was sold
| 43% | 37% |
| Disability Access and Facilities[9]
| | |
| Spoken announcements in store? | 78%
| 20% |
| Wide aisles? | 67% | 39%
|
| Clearly marked hearing loops? | 37%
| 17% |
| Chair available? | 31% |
14% |
| Easily accessible form dispenser? | 34%
| 17% |
| Low level writing desk? | 23%
| 12% |
| Staffed low counter position? | 22%
| 10% |
| Unstaffed low counter position? | 18%
| 4% |
| Low level weighing scales? | 18%
| 8% |
| | |
Annex 2
DEFINITIONS OF RETAIL CENTRES
Table 1
TYPES OF CENTRE
| City Centres | City centres will be the highest order of centre identified in strategic guidance. In terms of hierarchies, they will often be the regional centre and will serve a wide catchment. The centre may be very large, embracing a wide range of activities and may be distinguished by quarters or other areas which may perform different main functions, such as leisure and retail. Planning for the future of these quarters or other areas can be achieved successfully through the use of master plans or area action plans with development briefs for particular sites. In London the "international" and "metropolitan" centres identified in the Mayor's Spatial Development Strategy typically perform the role of city centres.
|
| Town Centres | The term "town centre" encompasses a range of different size of centres, including market and country towns and traditional suburban centres. In terms of size and function, they will usually be the second order of centres after city centres and so, in many cases, they will be the principal centre or centres in a local authority's area (in rural areas, market towns and other centres of similar size and role function as important service centres, providing a range of facilities and services for extensive rural catchment areas). In planning the future of town centres, local planning authorities should consider the function of different parts of the centre and how these contribute to its overall vitality and viability. In London the "major" and many of the "district" centres identified in the Mayor's [draft] Spatial Development Strategy typically perform the role of town centres.
|
| District Centres | District centres will usually comprise groups of shops, separate from the town centre, often containing at least one food supermarket or superstore, and a range of non-retail services, such as banks, building societies and restaurants, as well as local public facilities such as a library.
|
| Local Centres | Local centres include a range of small shops of a local nature, serving a small catchment. Typically, local centres might include, amongst other shops, a general grocery store, a newsagent, a sub-post office and occasionally a pharmacy. Other facilities could include a hot-food takeaway and launderette. A network of local centres in an authority's area is essential to provide easily accessible shopping to meet people's day-to-day needs and should be the focus for investment in more accessible local services, such as health centres. The mix of uses in local centres should be carefully managed and the impact of other proposals on such centres carefully assessed.
|
| |
Table 2
TYPES OF LOCATION
| Town Centres | Service centre; preferred location for all key town centre uses. In larger centres may comprise a primary shopping area, and outside that a leisure and business quarter. Through the development plan, may be extended in scope to accommodate growth.
|
| Primary Shopping Area | Defined area of retail development within larger centres (generally comprising the primary and secondary frontages)
|
| Primary frontage | Primary frontages are most likely to include a high proportion of retail uses.
|
| Secondary frontage | Secondary frontages provide greater opportunities for a diversity of uses.
|
| Edge-of-centre | For shopping purposes, a location within easy walking distance (ie 200-300 metres) of the primary shopping area, often providing parking facilities that serve the centre as well as the store, thus enabling one trip to serve several purposes. For other uses, edge-of-centre may be more extensive, based on how far people would be prepared to walk. For offices, this is likely to be within 500 metres of a public transport interchange, including railway and bus stations within the urban area. Local topography will affect pedestrians' perceptions of easy walking distance. For example barriers, such as crossing major roads and car parks, the attractiveness and perceived safety of the route and the strength of attraction of the town centre, are all factors which must be considered.
|
| Out-of-centre | A location that is clearly separate from the primary shopping area within a town centre, but not necessarily outside the urban area.
|
| Out-of-town | An out-of-centre development on a greenfield site, or on land not clearly within the current urban boundary.
|
| |
Source:
http://www.odpm.gov.uk/stellent/groups/odpm_-_planning/documents/page/odpm_-_plan_-_026232-06.hcsp
9
31% of all franchise post offices visited (out of a total of
150) had none of the above facilities for the disabled, nor any
of the following: low level writing desks, low counter positions,
low level weighing scales, low level post box, information for
the disabled. Back
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