Post Time Huck's opens the first of several post offices planned for its stores
By Linda Abu-Shalback Zid
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EVANSVILLE, Ind. -- It was just a "good coincidence" that the post office at a Huck's convenience store opened on April 14, the day before tax day, but it did bring some business in right out of the gate, according to Todd Jenney, CEO of Carmi, Ill.-based parent company Martin & Bayley Inc.
And the word is continuing to get out about Evansville, Ind.'s new post office option—in part due to post cards sent out by the U.S. Postal Service (USPS), notifying nearby residents that the location was open for post-office business.
"We are getting some packages, but mostly people are buying stamps," Jennifer Dalhite, the store's manager told CSP Daily News. "It's just a matter of people finding out about it."
Jenney agreed, noting the chain aims to change the habits of area residents who are used to traveling to the main town post office nearly seven miles away.
"Sales are slowly picking up; it's a habit thing," said Todd Jenney. "It's the ultimate in convenience, saving trips for consumers. When was the last time you were able to pick up a few things and get your mailing done at 10 on a Sunday night?"
Jenney first heard about the post-office program at CSP's Outlook Leadership Conference last year during a presentation by Dennis W. Kelly III, program manager of contract postal units. He contacted USPS to find out which of Huck's 135 stores would qualify for the program. USPS said that 43 were likely candidates, and Huck's now has eight in the application process.
"We're optimistic that it's going to be a good partnership for us. And that being the case, I'm sure we would try to make as many work as possible," Jenney said. "We're fairly conservative; we want to make sure we can [operate] a few [successfully] before we try and do many" of the units.
Kelly explained about the selection of sites: "The program is a need-based program," he said, adding that when a store or chain expresses interest, the first thing the USPS does is check to see if there is a market for it. "We do it for two reasons: We don't want to have a business person invest money that wouldn't make them some money and would be closed in a year. And we want to be sure there's not an overabundance on every corner."
He said the entire process from application to opening can take four to six months. (In Huck's case, it was a six-month process to get the license, reconstruct existing counter space and schedule training for store employees.) Once the USPS agrees to a location, it provides casework, counters, and interior and exterior signage.
The store supplies the actual construction of the 150-square-foot "contract postal unit," which Kelly said can cost from $2,000 to $10,000, depending on the location and what is available at the site.
"If the post office becomes a very successful entity, an additional profit center, what a great thing that would be not only for our consumers, but for the P&L of that particular store," said Jenney.
The store purchases and sells the postal products at the regular price and then is given a percentage of the sales from USPS. As of June 2008, Kelly said there were 212 c-stores that offered postal services, generating $48 million in postal revenue. And while he says it can take a year to build up the postal business, Kelly adds that c-stores gradually see another benefit—with inside sales increasing 5%-10%. Or as Jenney said: "We get our door swinging a lot more times, and hopefully folks buy something [beyond their mailing needs]."
Martin & Bayley does business as Huck's, operating 135 stores in Illinois, Indiana, Kentucky, Missouri and Tennessee. Post Time
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"Sales are slowly picking up; it's a habit thing," said Todd Jenney. "It's the ultimate in convenience, saving trips for consumers. When was the last time you were able to pick up a few things and get your mailing done at 10 on a Sunday night?" 
