Memorandum submitted by The Scottish Grocer's
Federation
The Scottish Grocers' Federation (SGF) is the
trade association for the Scottish Convenience Store Sector. It
is the authoritative voice for the trade to both policy makers
and the media.
The SGF brings together retailers throughout
Scotland, from most of the Scottish Co-operatives, Somerfield,
SPAR and local independents who are our largest category of members.
Our members sell a wide selection of products and services throughout
local town centre, rural and community stores. According to recent
statistics (2007) there are just over 5,600 convenience stores
throughout Scotland, with annual sales in excess of £3.2 billion.
INTRODUCTION
SGF welcomes the opportunity to respond to the
questions raised by the Select Committee inquiry into the future
shape of the post office network.
The Post Office is a highly valued service in
many communities across Scotland. In certain areas a local shop
being able to provide a Post Office is the only viable method
by which a Post Office service can be provided.
Having a Post Office co-located within a store
has advantages for the retail outlet and the Post Office, with
both benefiting from increased footfall. All too often when the
Post Office closes in a small community so to does the local shop
as both businesses are run from one outlet and provide complementary
services. Being located within a convenience store ensures a Post
Office is more viable and secures the role of the local shop within
the heart of the community it serves.
FUTURE SERVICES
Government
If plans to launch an Identity (ID) Card proceed,
then this is a service which could be provided by the local Post
Office. This would also address the issue of access to all, as
the Post Office network covers the whole of the UK.
Post Offices have the facilities available to
offer one to one advice. This could assist with Government services
including benefits advice.
Local Authority
Post Offices could provide facilities for payment
of local authority housing rents, council tax payments, or car
parking fines.
Currently Proof of Age cards are only available
via local authority offices. It would be helpful for young people
if these cards could be made more widely available through the
Post Office network.
The Post Office could provide facilities for
the issue of season travel cards for bus companies. All these
services would increase footfall into the business.
Mail
Post Offices could be the main pick up point
for a number of mail carriers' letters and parcels, rather than
being exclusively for Royal Mail. With the increase in the use
of internet shopping, this would provide a useful service to the
local community and assist the business by increasing footfall
into local Post Offices.
CONSUMER PREFERENCE
FOR ALTERNATIVE
CHANNELS
Restriction Policy
During the process of gathering evidence from
SGF members for inclusion in this document, the issue of restrictive
policies has been raised repeatedly. Examples of restrictive policies
include the commission retailers receive from Camelot for providing
a lottery service. If a retailer with no Post Office provides
a lottery service they receive 5% commission from Camelot, however,
if the retailer has a Post Office co-located within their store,
the lottery service must be provided through the Post Office.
The retailer then only receives 4% commission with 1% going directly
to the Post Office. The Post Office will not take into consideration
that the shop in which the Post Office is co-located may have
offered the service prior to having a Post Office.
A similar situation applies to ATM's. A retailer
with no Post Office can generate an income from locating ATMs
within their store while a retailer with a Post Office is unable
to make any additional income from an ATM.
A concern regularly raised by SGF members relates
to PayPoint or Payzone. It is particularly difficult when the
Post Office restricts retailers from offering another method of
bill payment, which even applies to the retail side of business
or outside of Post Office operating hours. Currently the Post
Office does not offer a full range of bill payment services, since
some contracts are only available from companies such as PayPoint
or Payzone. It is unlikely the Post Office will ever win all the
bill payment contracts. This could lead to customers in some locations
having to travel considerable distances in order to pay utility
bills which is not in their interest.
Convenience stores provide an important service
to their local communities but they are also businesses which
must make a profit in order to provide a living for their owners.
Many retailers, who have helped to sustain the Post Office network,
question why they must comply with policies which make them less
competitive than a neighbouring store which does not have a Post
Office.
SGF is aware from discussions with members that
the inconsistent application of these restrictive policies creates
confusion. The Post Office can appear to waive some restrictive
policies but there is no certainty regarding the length of time
the waiver will last.
SERVICE/EFFICIENCY
Members have raised concerns regarding the efficiency
of Post Office Sales Teams and Business Development Managers.
One member reported when he asked the Post Office how they could
assist him with the refit of the Post Office co-located within
his store (costing in the region of £65,000), they offered
to provide name badges for the members of staff working at the
Post Office. The badges never arrived.
Currently, when staff attend Post Office training
courses, the retailer is required to pay staff travel and salaries
despite this being time out of the business. It has been suggested
that retailers and in particular multiple retailers, who have
their own training teams, would prefer to have the funds to conduct
their own in-house training.
It is important when the Post Office receives
a substantial subsidy from the Government that it is run efficiently
and is transparent. It should be monitored to ensure it is efficient.
POST OFFICE/COMMUNITY
BENEFIT
Local communities across Scotland would be devastated
if the services of a local Post Office were not available. As
stated earlier, often in rural and remote communities when the
Post Office closes, so to does the last shop in the community.
For many elderly people, as well as providing essential services,
the Post Office is a social hub and can prevent the most vulnerable
becoming completely isolated from society. The extension in the
range of services offered by the Post Office including insurance
and bureau de change has provided opportunities for retailers
who would have been unlikely to offer these services alone.
January 2009
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