Changes to the PostShop Kiwibank Network

Changes to the PostShop Kiwibank Network

13 May 2011

New Zealand Post, as widely signalled, is making some changes to its store network as part of ongoing work to ensure we are able to continually provide a commercially viable network of postal and banking services to New Zealanders.

Customer behaviour in New Zealand is becoming more sophisticated and has changed dramatically over the past five years. For instance we know more customers are using the convenience of paying their bills online, and large numbers of people are taking advantage of Kiwibank’s award-winning internet banking. The number of Kiwibank customers registered for online banking has doubled in the last five years, approaching half a million.

New Zealanders are also changing where and how they shop. The ongoing migration to malls and large shopping complexes and people shopping near where they work versus near where they live, is strongly influencing where we locate stores.

The onset of convenient technology and changing shopping habits has resulted in the current configuration of the PostShop Kiwibank store network not being reflective of these changes in customer behaviour. As New Zealand Post has clearly indicated through its Annual Report and last month in the media, this situation is not financially sustainable.

The challenge for New Zealand Post is to provide access to the services customers want in ways that enables us to run our business in a sustainable manner. To help achieve this New Zealand Post is investing significantly in technology such as self-service kiosks that will see New Zealanders able to access services in more locations and with greater convenience.

New Zealand Post will at the same time, however, have to close some stores where they are no longer best positioned or where there are other PostShop Kiwibank stores in close proximity. In other areas we will be changing the mix of services being offered - for example the retention of full postal and courier services, but the removal of banking services.

We acknowledge some customers will be impacted by these changes but New Zealand Post continues to provide the largest bank branch network in the country through 280 outlets, and postal services through more than 900 outlets.

It is proposed seven PostShop Kiwibank stores in Auckland (4), Wellington (2) and Dunedin (1) will close. Similarly it is proposed seven stores will change to PostCentres, offering full postal and courier services. The first of the store changes would be due to begin to be implemented from late June. P.O. Box holders and Kiwibank customers will be contacted directly at least a month before changes occur.

Details of the store changes are outlined in the table below; Store Location Nature of change Distance to nearest PostShop Kiwibank store

Triton Plaza (Nth Shore) Close 3.6km; 3 stores within 4km Nth Shore Mail Centre Close 1.6km; 3 stores within 3km Symonds Street (Auckland) Close 1.6km; 5 stores within 3km Greenmount (Auckland) Close 1.3km; 2 stores within 5km Grey Lynn (Auckland) Change to PostCentre 2.0km; 4 stores within 3km Parnell (Auckland) Change to PostCentre 2.0km; 4 stores within 3km Avondale (Auckland) Change to PostCentre 1.8km; 3 stores within 2.8km Fitzroy (New Plymouth) Change to PostCentre * 2.kms; 2 stores within 5km Manawatu Mail Centre (Palmerston North) Change to PostCentre 2.4kms ; 4 stores within 2.8km Carterton Change to PostCentre* 8.5km The Terrace (Wellington) Close 400m; 4 stores within 1.6km 43 Manners St (Wellington) Close 75m; 3 stores within 700m Miramar Change to PostCentre 2.2km Dunedin Metro Close 1.1km; 3 stores within 2km

*To reflect demand in the local area in which they operate, in addition to full postal and courier services, these stores will also provide bill pay services.

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