The post office in Dunedin's Exchange will close this month, despite widespread opposition to the move.
The closure will leave the Exchange without a post office for the first time in more than 150 years, and its seven staff waiting until June 13 to discover their fate.
Confirmation of the closure came yesterday, just one day after Dunedin Mayor Dave Cull pulled an about-face on the issue, bowing to public pressure by lending council support to opponents of the move.
He told New Zealand Post chief executive Brian Roche in a letter the council was actively looking at ways to revitalise the Exchange, and suggested it could find ways to support the viability of the branch, perhaps through offering short-term car parking in the area, or the help of the economic development unit.
Those offers did not change the decision.
Mr Cull was backed by Cr Colin Weatherall, who was disappointed by yesterday's news, and pointed to regular long queues at the South Dunedin and Moray Pl branches, and the "big ask" from New Zealand Post to send Exchange customers all the way to either of those facilities.
Save Dunedin Metro Postshop and Kiwibank's Victor Billot asked why the branch could not have been given a six-month reprieve to give it time to turn its fortunes around.
Mr Billot said he had sent 2000 opposing signatures to New Zealand Post, and collected up to 400 since.
"We still haven't had a personal reply from Brian Roche, who is apparently overseas at a postal conference.
"Perhaps that expenditure could be redirected into keeping post offices open in New Zealand.
"This post office is ours. The doors are still open and we want to keep it that way," Mr Billot said.
Last month, New Zealand Post announced its intention to close the Dunedin outlet in Princes St, citing low patronage and the proximity of other stores.
Yesterday, New Zealand Post head of external communications, John Tulloch, said customer numbers for the store were too low for it to be sustainable. "It is attracting nearly 500 people per day fewer than the Dunedin South store, and nearly 400 per day fewer than the Moray Pl store.
"Already low customer numbers had declined a further 7% in the first four months of this year."
Mr Tulloch said most of the business through the Dunedin Metro store was for postal services, rather than banking and bill-paying services, and it was well documented that physical mail volumes were declining 5% each year.
"Demand for postal services is contracting and not expanding.
"Any increase in custom in the Dunedin Metro branch would merely reflect a drop in custom at other branches."
In an email yesterday to Mr Billot, responding to the petition opposing closure, government and community relations manager Peter Faafiu said the company "acknowledges the passion and loyalty shown by the people who signed the petition".
"However, the underlying and compelling business reasons to have to close this store remain."
Kiwibank customers would be informed by mail, while in-store signs would inform other customers of the change.
The company had negotiated with the landlord to enable the post office box lobby, containing 1548 boxes, to remain at the same location.
Mr Cull said in his letter to Mr Roche there were "dimensions to this issue for the Dunedin community beyond economics".
"The post office is highly valued as a social and community service.
"There is also deep concern about the effect closure would have on the business and retail vitality of the area.
"As a result, I have been approached by a very wide range of people and groups seeking my support as mayor in asking you to reconsider your proposal.
"I do so here."
