The Post Office to franchise 108 directly managed branches

The Post Office has confirmed it will seek to franchise its 108 directly managed branches, including the Post Office in Stockport town centre.

The ambition for the Post Office to close its Crown Post Offices and shift to a fully franchised model was first set out in Autumn 2024, and a Board decision announced on 8th April has confirmed it will begin the process of seeking franchisees to run 108 sites nationwide, including nearby Post Offices in Didsbury and Hyde, as well as in Stockport town centre.

Subject to Government funding, the 108 Crown Post Offices will be franchised by Autumn 2025, with a view that communities served by them will continue to be able to access Post Office services under new franchisees. Post Office has confirmed it will will work with franchise partners with a clear track record of successfully running Post Office services or similar customer-focused retail, with Tesco and Ryman among parties interested in taking on some of the sites.

In total, around 1,000 jobs will be affected and move off of the Post Office’s payroll. The change is anticipated to enable the Government-owned organisation to increase Postmaster remuneration by £250 million by 2030 as a result of the savings.

The shift is part of the Post Office’s ‘New Deal for Postmasters’, launched in Autumn 2024 as the organisation seeks to rebuild trust with its Postmasters and the wider public in the wake of the Horizon IT scandal.

Nigel Railton, Post Office Chair, said:

“Moving to a fully franchised network is one part of enabling the Post Office to deliver a ‘New Deal for Postmasters’, helping to create a long-term, sustainable future for the Post Office. By franchising these branches, we are protecting access to our services for communities right across the UK and realising £40 million worth of savings that will enable us to uplift postmasters’ remuneration by up to 10%.

“Over the coming months, we will continue to work with our unions to ensure that we treat our staff working in these 108 branches with care and respect through this transition, consulting with them on proposed changes. The 108 Post Offices will either stay in the same location where possible or be located close to the existing location, meaning customers will continue to have access to a full suite of products and services.”