Briefing: Post Office Closures
The United States Postal Service is struggling to adapt to the realities of reduced demand and Central Massachusetts may play a role in its attempts to stop hemorrhaging money.
Three local post offices are on the list of 3,700 the USPS is reviewing for potential closure.
Which post offices are on the list?
In Worcester, the Mid Town Mall station at 22 Front St. and Main Street Station at 484 Main St., both in the heart of the downtown business district, are slated for closure. The third Central Massachusetts location is in Fitchburg, at 477 Main St.
How many post offices are there in Worcester and Fitchburg?
Worcester has a total of eight post offices, including the main office on East Central Street, which is just under a mile from Mid Town Mall and Main Street Station. Fitchburg has two post offices, both on Main Street.
Are any of the locations commercially significant?
Not really. Vacancies in downtown Worcester are not widespread, said William D. Kelleher IV, vice president at Kelleher and Sadowsky Associates Inc. But the potential vacancies have not created much of a buzz in the business world. “The addition of those spaces won’t really impact the market to any great degree,” Kelleher said.
And there is unlikely to be much demand for space if the post office vacates its Prichard Plaza location in Fitchburg, said Rick Healey, of Foster-Healey Real Estate in Leominster. “Unfortunately, there are already a great deal of vacancies on Main Street in Fitchburg,” he said.
How many of the 3,700 post offices will close?
It is not yet clear, but it is unlikely the postal service will vacate all of the post offices that have made the initial closure list. It is considering converting some to “village post offices.” That means that the USPS would contract with a pharmacy, grocery store or gas station to offer stamp sales and other postal services. Village post offices drive foot traffic to existing businesses and already account for 35 percent of revenues, of which stamps are the biggest part.
What is the postal service’s financial situation?
The United States Post Office is losing 7.7 cents for every piece of mail it transports, according to its most recent financial statement, which reports a $3.1-billion loss for the third quarter.
Even with cost-saving efforts, the USPS is on track to hit its borrowing limit at the end of this year and will default on its payments without a bailout from Congress.
The postal service shipped 39.8 billion pieces of mail during the quarter, down from 40.9 billion pieces during the same quarter last year.
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