Tesco mulls potential Crown Post Office deal
Tesco is reported to be considering the acquisition of over 100 Crown Post Offices, possibly using a franchise model.
Crown Post Offices are currently managed directly by the Post Office, and account for only a small percentage of overall branch numbers.
According to Sky News, Post Office chairman Nigel Railton told MPs this week that the UK’s largest retailer had expressed an interest in purchasing the 108-site network of directly managed branches.
One MP said Railton had given the impression that Tesco was among a small list of interested suitors that could take over the sites.
The potential takeover follows Railton review, conducted last year, into the future of Crown Post Offices.
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It is understood that if purchased by a single retailer, the network’s workforce of almost 1,000 employees would have their jobs safeguarded.
A Post Office spokesperson said: “We are fully committed to engaging openly and transparently with MPs regarding any potential plans related to our Directly Managed Branch (DMB) network.
“Since inviting expressions of interest for 108 Post Offices that we currently operate, we have received interest from retail partners and independent postmasters in the hundreds.”
Tesco has been contacted for comment.
2 Comments. Leave new
As the money paid to PO franchisees doesn’t cover wages it seems a very poor investment.
I would only imgaine that this to aquire sitea round the country that they will then use for the express brand with new post office services being offered. It would help grow the express format by over 100 stores will relative ease into areas that they potentially couldnt get ideal sites.