Calls to halt Tesco's acquisition of post offices rejected

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Attempts to slow down the acquisition of post offices by Tesco and other leading retail chains have been rejected by the government in the run-up to privatisation of Royal Mail.

The Commons Business, Innovation and Skills select committee has expressed concern that current developments could result in a small number of retailers running the majority of outlets. One Stop, the Tesco subsidiary, is reported to be interested in taking over 600 of them.

MPs said a full-scale takeover of post offices by a few companies would make it more difficult for individuals to own post offices and change the ethos of many of them.

The government, in its reply, said it did not share the concerns about large multiple retailers dominating the network.

It said multiple retailers and symbol groups currently operated around a quarter of post offices across the country and contributed to a "well established and beneficial mixed ethos within the network as a whole."

The government pointed out that the four biggest supermarkets with 5,000 outlets did not have a portfolio that met strict access criteria.

Under the terms of the criteria the Post Office is required to ensure that 90pc of the population live within a mile of a post office branch and to maintain a network of at least 11,500 outlets.


The government is committed to maintain the network at its present size, underpinned by a £1.34bn funding package which includes an ongoing subsidy to maintain the network and modernise around 6,000 branches by 2015.