Business · Companies · 4 hrs ago
Canada Post sees early recovery signs as it plans major service changes
Canada Post says its finances are showing early signs of improvement, as it tries to recover from years of losses and losing parcel business to competitors.
CEO Doug Ettinger said the postal service is regaining some parcel customers through discounts for small businesses and a new online marketplace.
Its pre-tax loss was $277 million in the second quarter, down from $407 million in the same period a year earlier, as revenue rose and costs fell.
Canada Post still faces deep financial challenges, partly because fewer people send letters and its delivery network needs to change.
The company plans to move four million addresses to community mailboxes over about five years, while continuing service to rural and remote communities.
It expects about 700,000 households to make the switch by the end of 2027, and has launched an online tool showing when areas are scheduled for conversion.
Weekend parcel delivery and changes to the post office network are also under way, as Canada Post works to improve its finances and win back business.
Canada Post says it is showing early signs of financial recovery, though it still faces structural challenges and financial losses.
The corporation plans to switch the remaining four million addresses with doorstep delivery to community mailboxes within about five years.
By the end of 2027, about 700,000 more households are expected to collect mail from community mailboxes.
Canada Post is also expanding weekend parcel delivery, offering discounts to small businesses and testing an online marketplace.
CEO Doug Ettinger said the post office network is overbuilt in cities, while promising the corporation will continue serving small communities.
- Who
- Canada Post and its CEO, Doug Ettinger.
- What
- The corporation reports early signs of financial recovery while planning major service changes, including more community mailboxes.
- When
- The plans were discussed at Canada Post’s annual public meeting on Thursday. The conversion of remaining doorstep addresses is planned over about five years.
- Where
- Across Canada, with about 700,000 households from Halifax to Victoria expected to move to community mailboxes by the end of 2027.
- Why
- Canada Post is responding to declining letter mail, financial losses and the loss of parcel market share.
This story does not have two clearly opposing sides.
Canada Post’s share of the parcel market fell from 62 per cent to 29 per cent.
Canada Shops, an online marketplace connecting Canadian retailers with domestic shoppers, was launched and entered testing.
Canada Post reported a second-quarter pre-tax loss of $277 million, down from $407 million a year earlier.
Canada Post launched an online tool showing customers when their area is scheduled to switch to community mailboxes.
About 700,000 more households are expected to collect mail from community mailboxes.
- Second-quarter pre-tax loss
- $277 million
- Loss a year earlier
- $407 million
- Doorstep addresses still to convert
- About four million
- Households due to convert by end of 2027
- About 700,000
- Parcel market share, 2019
- 62 per cent
- Parcel market share, 2023
- 29 per cent
What people are saying
We will not abandon the small communities that rely on us.
This is not where any of us wanted to be.
These results do not resolve our structural challenges, but they show that … the trajectory can improve.