USPS May Not Have Cash to Meet Payroll in October

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In a series of tweets, Scott MacFarlane has reported  that a presentation by Jim O’Brien, VP Distribution and Postal Affairs of Time Inc indicated that the USPS may run out of cash next October.   The presentation was made at a recent “Industry Focus Group. A Postal Service spokesperson confirmed to Mr. MacFarlane that the Federal Government will be responsible for payroll as of that date if the Postal Service runs out of cash and the Postal Service is expected to continue to provide service. US Postal Service tells @macfarlanenews : “possibility the American taxpayer will be on the hook” for postal worker paychecks come October — Scott MacFarlane (@MacFarlaneNews) April [...] Read more »

USPS Delivered a Record Share of FedEx Ground Shipments


Between December 2012 and February 2013, the U.S. Postal Service delivered a record 35.6% of all FedEx Ground shipments.  The Postal Service delivery was provided as part of the FedEx SmartPost product which experienced a 26.4% growth in shipping volume during FedEx’s 3rd fiscal quarter that ran between December, 2012 and February, 2013. The following chart illustrates the growth in Postal Service delivered shipments as a share of FedEx Ground shipments.     The Postal Service share of FedEx Ground deliveries has steadily grown over the past five years.   The Postal Service’s share of FedEx Ground deliveries in the 3rd quarter of FedEx’s 2013 fiscal year represents a 9.6% increase [...] Read more »

Delivered Retail Sales hit 26.5% in January

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Retail sales delivered to the consumer hit 26.5% of all deliverable retail sales in January 2013.  The proportion of retail sales that are delivered rose from 18.3% nearly 5 years ago and  14% a decade ago.  Current trends, which have been consistent for a number of years project that almost half of all retail sales that can be delivered will be delivered by the end of this decade. Deliverable retail sales is defined a  department store types of merchandise and are sold by retailers selling furniture & home furnishings (442), electronics & appliances (443),   clothing & accessories (448), sporting goods, hobby, book, and music  (451), general merchandise (452), and office [...] Read more »

Mail is a Diminishing Advertising Channel at JPMorgan Chase

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In an interview on Bloomberg Television’s Market Makers, Eileen Serra, CEO of JPMorgan Chase & Co’s Card Services described mail as a diminishing marketing channel for finding new customers. Given the importance that financial marketing has been for the Postal Service, Ms. Serra’s comment raises red flags about the future of a major chuck of direct mail advertising Currently, the most important marketing channel is JPMorgan Chase’s branch network which generates half of all new credit card customers.   The branch network operates as a marketing channel even though JPMorgan Chase’s customers visit a branch on average only four times a year. The second most important marketing channel is digital and [...] Read more »

USPS Falling Behind Transit Agencies in Providing Banking Services


Southeastern Pennsylvania Transportation Authority (SEPTA) is about to introduce a new branded payment card that will allow transit riders to have paychecks directly deposited to the transit card.   The cards will be comparable to any other debit card and will have the ability to pay bills on-line, make payments at merchants in addition to pay transit fares. The SEPTA branded debit card is designed to serve un-banked and under-banked in Southeastern Pennsylvania, many of whom are regular transit riders.   The card will compete with similar cards offered by Walmart, eBay’s Paypal, and Greendot.    If SEPTA’s branded debit cards are a success, one would expect that other transit [...] Read more »

Valassis indicates that Going to 5-day Delivery Will Have Little Impact for Them


When asked about the impact of Postal Service restructuring including the elimination of Saturday delivery,  Valassis CEO Robert A. Mason clearly indicated that these change would have minimal impact on Valassis’s mail delivered advertising. Bethany Caster, Stock Analyst, Raymond James Can you talk about how the USPS’ decision to stop Saturday delivery impact you, if at all? Robert A. Mason - Chief Executive Officer, President and Director, Valassis Very little. Today, we distribute less than 0.30% of a percent of our total weekly Shared Mail volume on Saturday. I would tell you, we actually applaud Postmaster Donahoe’s effort to try and streamline the USPS and their operations. We have been in very [...] Read more »

Macy’s Overall Sales Grow from a Rapid Increase in On-line Sales


Macy’s released its same store sales for January today which included the clearest indication that the future of Macy’s on line.    In the fourth quarter, 59% of Macy’s overall sales growth came from growing online sales.  For the full year, 89% of sales growth came from its online sales.   Macy’s does not break out sales from stores and online channels but based on information provided Macy’s appears to have generated 14% of all revenue from on line sales in 2012 as compared to around 10.5% in 2011. The following paragraphs highlight the relevant information from Macy’s press release. For the 14-week fourth quarter of fiscal 2012, Macy’s, Inc.’s [...] Read more »

In Past Decade, Congress Has Made Naming Post Offices a Top Priority


In the decade that the long-term financial problems of the Postal Service have been discussed openly, Post Office naming bills have become a focus of Congress.   In each of the past five Congresses over 15% of all bills passed and signed into law named a Post Office. The increase in interest in naming Post Offices began in the Congress that served when 9/11 occurred.   As such, it is likely that most of those honored by having a Post Office named after them died in the terrorist attacks in the United States, or served their country in the wars in Afghanistan and Iraq that followed.  If Congress expected that [...] Read more »

Senator Carper and Representative Issa Issue Joint Statement Pledging The’ll Work Together on Postal Reform


On the first day of the 113th Congress Senator Tom Carper and Representative Darrel Issa issed a joint statement indicating their willingness to work together on postal reform. “The Postal Service has a presence in every community in our nation.  Since its establishment, we’ve taken it for granted that our mail would arrive and that important business and personal correspondence would reach its destination. In addition, businesses large and small have come to rely on the mail to reach new customers and communicate effectively with existing customers. Although the 112th Congress did not come to a consensus around a package of reforms that can update the Postal Service’s network and [...] Read more »