Revenue and Costs in the Retail Network

The OIG analyzed revenues and costs of nearly all USPS-managed post offices in the U.S. The research found that both revenue and costs at post offices aligned closely with population density — highest in more urban areas, lowest in rural locations. However, rural post offices were more likely to have costs exceed revenue. Nationally, 42 percent of post offices did not cover their costs; in rural areas, it was 60 percent. Opportunities exist for the Postal Service to rethink its retail network either to increase retail network funding or reduce costs, or both.