Hongkong Post struggles with eight years of losses, threatens branch closures

Hongkong Post's Repulse Bay branch saw just five customers in an hour on a recent weekday morning, exemplifying the weak foot traffic that has left the service with only a handful of profitable branches after eight straight years of losses.

The near-empty office in one of Hong Kong's wealthiest coastal neighbourhoods had two staff members waiting to serve the trickle of visitors. Among them was Dicky Lo, a 43-year-old freelancer who sends parcels to Europe and collects online shopping packages two to three times monthly. He said he uses the service because prices are reasonable compared with private couriers.

Low productivity raises closure concerns

Lo, who lives in Repulse Bay, said shutting the branch would force him to travel 7km to Aberdeen for postal services. His concern reflects the service's predicament: the Repulse Bay office is one of five branches recording a productivity index below 50 per cent, a metric measuring mail volume and staff utilisation at individual sites.

"Not many residents use this branch, which is exactly why I like it because there is no queue," Lo said.

Public service versus profit debate

Lo defended the continued operation of loss-making branches, arguing that post offices serve a broader purpose than private logistics firms. "Besides sending parcels, residents can pay electricity, water, and tax bills here … They are different from private courier services," he said.

He rejected applying commercial yardsticks to government services. "Not every government service is profit-making, as they have to satisfy residents' needs. We cannot judge them merely by profit and loss," Lo said.

The debate encapsulates the challenge facing Hongkong Post as it navigates eight consecutive years of deficits with few profitable branches remaining.

Source: South China Morning Post