Crippled by inadequate remuneration, rising costs, and a strained relationship with their corporate overseers, local Post Office branches seem to be in crisis, bringing forth an urgent need for a wholesome systemic change.
While the fallout from the Horizon scandal lingers, relationship between sub postmasters and the Post Office is seemingly on a downhill and continues to remain somewhat toxic.
The mistrust and skepticism among sub post masters towards Post Office run high, as found by Asian Trader, often bordering into a sense of being intimidated.
According to ACS Local Shop Report 2024, 20 per cent of about 50,387 convenience stores in the UK provide Post Office services. In many communities, these branches are often the sole providers of essential banking as well.
While it is often argued that having a Post Office branch boosts retail footfall, sub post masters, in candid conversations with Asian Trader, paint a starkly different picture of the grim reality they face.
Once touted as vital hubs of community life and profitable assets for retailers, local Post Office branches now find themselves as loss-making appendages.
For sub postmaster Jerry Brown, who has been running a Suffolk branch for 17 years, the footfall generated by his branch amounts to little more than "the dirt that falls off people's shoes” and his branch, at First Class Greetings and Plum Green in Hadleigh, costs him £500 monthly.
This sentiment is echoed by others too, including convenience store retailer Benedict Selvaratnam, who has been running a Post Office in Croydon’s Freshfield Market for the past four years.
Despite being a busy branch, the remuneration received from Post Office for the services translates to £6 an hour, far below minimum wage. The financial model, according to the retailer, fails to compensate for the significant responsibility that sub postmasters shoulder.
His frustration is compounded by the Post Office clientele that comes in—most in a hurry, often irate, and sometimes abusive.
He said, “We are a busy post office yet it does not generate a profit. It's actually a cost to the business. But overall, because it brings a football in, that's what we hope and bank upon.
Retailer Benedict Selvaratnam
“I love running the Post Office branch and determined to continue providing the services. However, the amount of responsibility that we shoulder, we are not compensated enough for that.”
Elsewhere in Northamptonshire, sub post master and retailer Vidur Pandya finds himself in a similar predicament. While his unique position as the sole Post Office in the area results in footfall for the retail side, the remuneration does not cover even the minimum wage costs.
Echoing the frustration of sub post masters, the National Federation of Sub Postmasters (NFSP) delivers a damning indictment of the Post Office network’s broken promises.
Calum Greenhow - Chief Executive Officer of NFSP, told Asian Trader, “The anecdotal evidence shows that owning a post office doesn't necessarily make money. Actually, it's the retail side that's actually subsidising the post office branches.”
“In fact, there is evidence that shows that if you've got a strong retail that's actually a benefit to the post office, which is the exact opposite to what Post Office tends to claim.”
The root of the problem lies in the Network Transformation Programme (NTP) introduced in 2012 that saw sub-postmasters paid per transaction instead of receiving a fixed salary.
Under NTP, remuneration rates for local Post Office Branches (as seen by Asian Trader) have been woefully inadequate. Amounts such as 6.00p per £1 sales of First Class stamp sales, a mere 31.00p per completed transaction for Home Shopping Returns, and just 23p per Completed Transaction in Auto Cash Withdrawals (Personal) fail to reflect the critical role the local branches play.
The subsequent removal of profitable government services and increased use of online services have left sub post masters clinging to a shrinking portfolio of less fruitful offerings.
Greenhow revealed, “In 2011, we were being led to believe by government that it was going to lead to a new profitable system. The figure of 300 million pounds was thrown around, and also that we, as investors in the network, would actually have ownership in the business.”
Today, the optimism of that era has soured into disillusionment.
“There is this feeling amongst sub postmasters today of being manipulated about network transformation plan in 2011. It absolutely wasn't fair, because what was sold to us back then and reality is something different,” Greenhow lamented, revealing bare the deep structural issues plaguing the Post Office network.
Toxic Relationship?
The NFSP points to survey data showing declining trust among current sub postmasters towards Post Office. Many sub postmasters feel their concerns are ignored, and their investments in the network go unacknowledged. Some even fear to speak up openly.
Greenhow pointed out, “The level of trust between the two has gone down. Despite everything that the post office is saying that it is doing, it is clearly not making any difference. Their efforts feel like a PR exercise, rather than something substantial or tangible.”
To fill the void, NFSP is coming up with an “oversight committee” to make some space for sub post masters in the system and give them a voice.
Greenhow said, “We must have a better say, we want to work towards mutualisation, because only then sub postmasters will be in a situation where they can really challenge the post office and the government to do better for everyone.”
Once again, Post Office has set out an ambitious five-year Transformation Plan to deliver a “New Deal for Postmasters” that significantly increases their total annual income through revenue sharing and strengthens their role in the direction of the organisation.
Calum Greenhow - Chief Executive Officer of National Federation of Sub Postmasters
The “New Deal for Postmasters” , announced on Nov 13, follows a Strategic Review initiated by Post Office Chair Nigel Railton in May. The Transformation Plan sets out an ambition to deliver a £250 million boost to postmasters’ income by 2030. These improvements to remuneration are subject to funding discussions with the government.
Alongside this, the Post Office is establishing a new Postmaster Panel as well as a new Consultative Council.
However, as the NFSP chief and other sub post masters pointed out, much remains uncertain and there are no details yet. For many, these commitments are viewed skeptically, given the Post Office’s historical track record.
Greenhow acknowledges improvements in leadership but warns of potential pitfalls.
“What if they again come up with something that doesn’t suit the Postmasters? That’s the big problem,” Greenhow said.
Lingering Shadow of Horizon
Be it remuneration or dismissive attitude, the relationship between sub postmasters and the Post Office corporate leadership is sour. The lingering scars of the Horizon scandal have only compounded this situation.
For Brown (also a member of Voice of the Postmaster), the psychological toll of unexplained financial shortfalls under Horizon was profound. Describing the Post Office senior executives as “Post Office leeches”, he stated how the scandal has not only caused financial losses but eroded trust in the organisation’s leadership forever.
Brown told Asian Trader, “I believe every sub postmaster suffered some losses under Horizon. We certainly experienced losses over a number of years that we just covered on our own because at the time we had no choice.
“But what still gives me chills is that it could have easily been a £50,000 shortfall instead of a £500 one. These shortfalls, no matter how small, had psychological consequences as we used to get stressed out to find where we made a mistake, even started doubting our staff.”
Greenhow too thanks his stars that he was not caught in the Horizon scandal despite running a branch for over 29 years.
He said, “In truth, there is absolutely nothing that I have done differently as compared to the victims.”
Sub post master Jerry Brown
For current sub postmasters like Selvaratnam, knowing the details of the scandal -Post Office’s attitude towards sub postmasters’ complaints of shortfalls and later the legal actions bestowed upon them- is nerve wracking.
He said, “For us current sub postmasters, the ITV drama was really an eye opener. It really made us think twice about what we are doing daily. We also deal with a lot of cash. We just hope that such a callous miscarriage of justice never happens again.”
NFSP meanwhile underscores the long history of Post Office malfeasance, noting before Horizon, there were other faulty systems that also led to prosecutions, suggesting that prosecution regimes against sub postmasters date back over three decades.
Greenhow revealed, “There are two other programs that the post office provided before Horizon that were faulty. Recent KROLL report shows that there were bugs, defects and errors within Capture, a pre-Horizon system.
“There was another one called ECCO+ that was in operation between 1992 to 1999 and within that period. I have learned, (just in the last few days) that post office undertook 334 prosecutions over that eight year period- that's equivalent to what went on in the Horizon years.
“So we're talking about a prosecution regime over a 32-year period, not a 25-year period.”
Clearly, the Horizon scandal was not an isolated incident but part of a broader pattern of neglect, exploitative and dismissive attitude of the Post Office. Sadly, it is the same attitude that led to prosecution of hundreds of sub post masters, leading to bankruptcy of many, broken families, destroyed reputation and even suicides.
What is disturbing here is the attitude somewhat still remains the same and seemingly not much has changed.
Glimmer of hope?
Some sub postmasters, like Brown and Pandya, express cautious optimism in the leadership of Railton and Brocklehurst, whose relatable approach and apparent commitment to reform have sparked hope for change.
Meanwhile, Post Office area managers are also commended for “humanising” the corporate relationship, providing a much-needed bridge between the top-level management and those on the ground.
“What I see in the forums is that the approach of senior management is changing, albeit very slowly,” observes Pandya, calling for same remuneration rates for all kinds of branches.
Despite the tension and conflicts within the system, the bond between sub postmasters and their communities continues to remain steadfast.
Retailer Vidur Pandya
As Greenhow explained, “There might be a negative feeling against post office as a corporate but there's a real affinity and a real connection between the local postmaster and the community. That relationship has remained very strong.”
What Post Office network needs to comprehensive overall reform and shift in mindset.
As Selvaratnam said, "The government and the post office have got to value and support local branches as essential community assets in such a way that the branches are protected and can continue to provide key services.
“Just because they got us on a commission should not mean they can get away with underpaying us. We are offering services nine to six 365 days a year and we are paid peanuts. This needs to be changed.”
As Greenhow aptly states, “We are talking about the fate of generational family businesses here. The Post Office must treat sub postmasters as partners, respecting their investment and hard work.”
It is clear that the sub postmasters are the backbone of Post Office network and many communities too, providing essential services despite the odds stacked against them.
Yet, the pressing question that remains here is how long can sub postmasters' resilience can sustain a flawed model? And, is it fair?
Following a disappointing Golden Quarter, retailers had a strong start to the new year, as latest data shows rise in total UK retail sales volumes with a particular considerable rise in food stores sales volume, prompted by more people eating at home.
According to Office for National Statistics (ONS) retail sales figures for January released today (21), retail sales volumes are estimated to have risen by 1.7 per cent in January 2025, following a fall of 0.6 per cent in December 2024.
ONS figures show that food stores sales volumes rose by 5.6 per cent on the month. This is the largest rise since March 2020, putting index levels at their highest since June 2023.
This follows four consecutive falls on the month, ending in December 2024 when index levels were their lowest since April 2013.
Supermarkets, specialist food stores like butchers and bakers, and alcohol and tobacco stores all rose over the month. Retailers suggested that the increase was because of more people eating at home in January.
Non-store retailers' sales volumes rose 2.4 per cent on the month, partially rebounding from a 3.4 per cent fall in December 2024. Retailers in this sector reported post-Christmas sales remaining strong.
Non-food stores – the total of department, clothing, household and other non-food stores – fell 1.3 per cent over the month. Clothing retailers and household goods stores suggested the fall was because of reduced consumer confidence.
Commenting on the figures, Silvia Rindone, EY UK&I Retail Lead states, "January sales figures had a strong start to the new year, with total UK retail sales volumes estimated to have risen by 1.7 per cent month on month.
"Following a disappointing Golden Quarter, where sales struggled to gain momentum, the latest ONS data indicates a more stable foundation for retailers as they move into 2025.
“Food store sales volumes in particular saw robust growth in January 2025, recovering from declines in recent months. However, it is important to note that, more broadly, sales volumes fell by 0.6 per cent in the three months leading up to January 2025 compared to the three months ending in October 2024."
The EY ITEM Club Winter forecast predicts consumer spending will grow by 1.6 per cent, an improvement from the 1 per cent growth observed in 2024. However, the weaker-than-expected end to 2024 means retailers need to remain vigilant in their strategies, Rindone added.
“While macro trends such as growing consumer income in real terms and lower interest rates are positive news, the benefits are not being felt evenly across the retail landscape.
"Overall growth in the retail sector remains sluggish, masking a mix of both strong and poor performers within every retail sub-sector. Performance is highly variable and largely dependent on how well retailers have optimised their customer offerings—both digitally and physically—over recent years.
"Those who have not invested in their propositions are now struggling to find the space to invest further in increasingly challenging conditions."
Rindone calls on retailers to build a broader proposition that goes beyond selling products.
"Designing service offerings that effectively solve customer problems is one example of how they can foster loyalty and drive sales. Additionally, investing in strong brands that drive trust will be crucial for retailers looking to differentiate themselves in a competitive market.
“While January has brought a positive start to the year, the retail sector must remain agile and focused on customer-centric strategies to thrive amidst the anticipated economic challenges ahead.”
Consumer confidence in the UK economy has taken another hit, with expectations reaching a new low, states the latest industry data, ringing alarm bells ahead of upcoming hikes scheduled in April on multiple fronts.
While households are also gloomier about their own personal finances, retailers are also facing mounting challenges, with rising operational costs and potential hiring freezes on the horizon.
According to BRC-Opinium data released today (20), consumer expectations over the next three months of the state of the economy worsened to -37 in February, down from -34 in January. This is the fifth consecutive month in which expectations have worsened.
Their personal financial situation dropped to -11 in February, down from -4 in January while their personal spending on retail rose to -5 in February, up from -9 in January.
Their personal spending overall remained at +4 in February, the same as in January and their personal saving remained at -3 in February, the same as in January, shows the BRC data.
Helen Dickinson, Chief Executive of the British Retail Consortium, says, "People’s expectations of the economy reached a new low, having fallen almost 40pts since July 2024.
"Even Gen Z (18-27), the most upbeat generation on the economy and their own finances, saw a drop off in optimism. There was also a widening gender divide in confidence this month, with women more pessimistic than men about both the economy and their own finances by 13 and 17pts respectively.
"With many businesses warning of the impact that April’s employer NIC’s increase will have on hiring, and the rising energy price cap pushing up the cost of domestic bills, it is little surprise that many households are worried.
"And while there was a positive increase in expectations of personal retail spending, this may be largely driven by the expectations of higher prices in the future."
Expectations of higher prices are not unfounded, with two-thirds of retailers saying prices will have to rise as a result of the £7bn in additional costs, including higher employer NICs and a new packaging levy, Dickinson says.
"Almost half of retailers also warned of hiring freezes, with entry-level jobs often among the first to go as they seek any cost efficiencies to help them protect customers from the worst of the rising costs.
"As the Government bill on the future of business rates progresses through Parliament, it is essential that no shop ends up paying more in rates as a result of these reforms, otherwise retailers will face a triple whammy of Budget costs, business rates rises, and new packaging and recycling levies, all of which will filter through to consumer prices.”
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A general view of the Warrington offices of technology company Fujitsu in Warrington, England
Post Office Horizon scandal victims have slammed Post Office for paying "£40 million" to extend its contract with Fujitsu to continue using the controversial Horizon IT software, as revealed in a recent report.
At least 900 subpostmasters and subpostmistresses were wrongly prosecuted for apparent financial shortfalls caused by faults in the accounting software, in what has been described as one of the UK’s biggest miscarriages of justice.
Despite that, data revealed by inews shows the Post Office has renewed its contract with Fujitsu to continue using Horizon until March 2026 at a cost of £40.8m.
The Post Office previously said it planned to replace Horizon with “new branch technology” but would maintain the old IT software until the new technology is developed.
Christopher Head OBE, a former sub postmaster, was sued by the Post Office in the civil courts for more than £80,000 that was supposedly missing from his branch. He has not yet been compensated.
Responding to Fujitsu’s new contract, he added, “We understand that in order to transition to a new system you have to maintain the old one until you get to the point that you are satisfied.
"In this circumstance, with the Post Office, you’d be more cautious given what’s happened with the previous system.”
Janet Skinner, aformer subpostmistress from Hull, was handed a nine-month sentence for theft in 2007 after £59,000 appeared to be missing from her Post Office branch.
She served three months of that sentence before being released with an electronic tag but was hospitalised in 2008 with a stress-related illness.
Commenting on the extension of Fujitsu’s contract, Skinner told inews, “It’s an insult. It’s like they are rewarding them for their bad behaviour.
“There needs to be accountability and accountability is not awarding contracts to a company that has been at the forefront of this scandal.
“It just infuriates me. Absolutely infuriates me. God knows what the other postmasters are feeling. It’s just like being kicked in the teeth.”
A spokesperson for the Post Office said that, while it is too early to speculate about when Horizon will be replaced, it is “committed to delivering a lower-risk, better-value new branch IT for postmasters”.
A Fujitsu spokesperson said, “We are focused on supporting the Post Office in their plans for a new service delivery model, so branches can continue to deliver key services to the public.”
Last year, Tango brought back fan favourite, Tango Cherry Sugar Free, to answer demand from loyal Tango fans and to create some buzz in the chiller. Flavour innovation is fundamental in keeping shoppers engaged with the fruit flavoured carbonates category and Cherry flavoured drinks are now worth over £45m and growing 54.2 per cent vs last year. Following the success of Tango Mango Sugar Free and Tango Apple Sugar Free over the last few years, the new Cherry flavour aims to pack a similar punch and help retailers attract both Gen-Z and families to try the delicious new flavour.
To support retailers and help them make it a success in-store, Tango activated a branded takeover with two retailers, complete with free stock and merch giveaways outside of the store. The activity aimed to encourage footfall and drive trial of the product, including a branded gazebo, a Tango Cherry can cart for sampling, and a Tango Cherry-grabber where consumers could win a selection of Tango-inspired prizes.
What did our retailers think?
Over two days, both stores engaged with 1,200 shoppers and gave away 1,000 samples to lucky locals. On top of that, the retailers sold a total of 109 cans of Tango Cherry, supported by the activation and community engagement in-store.
Danni, Store Manager, Costcutter Kidderminster, said of their activation: “Where to start?! The guys there on the day were fantastic, interacting with both customers and staff and the grab machine was so popular that there were queues to use it. On top of that, we offered a buy-one-get one-free deal for the day which really drove sales. Overall, it was an extremely good experience for all and we hope for more days like it in the future.”
Julie, Premier Jule’s Convenience, said of their activation day: “It was the first time we have had anything like this, was fantastic to have some in-store theatre and from the photographer to the Tango team it was brilliant. We had a great time with the grabbing machine and it was great to engage customers with our in-store team. We love engaging with our community as a family store and it was great to be able to do this as well as seeing an uplift in sales.”
Tango Cherry’s Top Tips
1.Stock the favourites: Tango has a proven track record of successful launches, and this flavour was always hotly anticipated. Tango Cherry was also mentioned over 90 per cent of times on social media prior to launch, which meant there was a clear demand for its return. Stocking items that have existing desirability and brands that shoppers already know and love, will ensure you’re offering and stocking what shoppers are on the look-out for.
2.Activate and make a splash in-store: Driving visibility in-store using Point Of Sale (POS) and engaging merchandising will help to increase awareness and sales. Utilising social assets is another effective way to signal product availability and entice customers down to your store. For retailing advice, access to POS and a wealth of other support, visit Britvic’s At Your Convenience platform.
3.Stock multiple formats to meet demand for any occasion: Tango can offer versatile formats to suit all sorts of consumer needs. Tango Cherry Sugar Free is available in a 330ml can, 500ml bottles and 2L bottles, giving you the opportunity to incorporate it into meal deals or big night-in bundles to increase basket spend and tap into different consumption occasions.
January sales kicked off a solid month for retail with stores delivering their strongest growth in almost two years, shows industry report released today (11).
According to retail body British Retail Consortium (BRC), UK total retail sales increased by 2.6 per cent year on year in January, against a growth of 1.2 per cent in January 2024. This was above the 3-month average growth of 1.1 per cent and above the 12-month average growth of 0.8 per cent.
Food sales increased by 2.8 per cent year on year in January, against a growth of 6.1 per cent in January 2024. This was above the 3-month average growth of 2.3 per cent and below the 12-month average growth of 3 per cent, shows BRC report.
Commenting on the figures, Helen Dickinson OBE, Chief Executive of the British Retail Consortium, said, “January sales kicked off a solid month for retail with stores delivering their strongest growth in almost two years, albeit on a weak comparable.
"Consumers headed to the shops to refresh their homes for the year ahead, taking advantage of big discounts on furniture, bedding and other home accessories.
"With growth across nearly all categories, only toys and baby equipment remained in decline. While the bouts of stormy weather put a temporary dampener on demand, sales growth held up well throughout the rest of the month. This was also helped by the earlier start of the reporting period, adding a few more post-Christmas shopping days into the mix.
“Whether this strong performance can hold out for the coming months is yet to be seen. Inflationary pressures are rising, compounded by £7bn of new costs facing retailers, including higher employer national insurance contributions, higher National Living Wage, and a new packaging levy.
"Many businesses will be left with little choice but to increase prices, and cut investment in jobs and stores. Government can mitigate this by ensuring its proposed business rates reforms do not result in any shop paying more in business rates.”
Commenting on food and drink sector performance, Sarah Bradbury, CEO of IGD, said, "The current climate of economic uncertainty is reflected in IGD’s January shopper confidence index, which has declined by 3 points.
"With unemployment at 4.4 per cent (+0.4 per cent vs this time last year), shoppers have responded by employing strategies to control their spend.
"The notable increase in volume over value sales suggests a shift towards private label products and a change in purchasing categories, as shoppers anticipate further price rises for food and drink.”