ysical store design — was given the opportunity to throw out the rules of retail and take a clean-sheet look at how to use floorspace. While that opportunity may be unique to Australia Post and its government-mandated store network, the ground turned and the lessons learned in Orange represent a valuable study in customer experience for the rest of retail to learn from. More than just shops The unique backstory to this initiative is the 4,000-strong network of Australia Post stores. For most retailers, the past decade has seen close scrutiny of store networks, as CFOs and boards asked how many expensive rental sites the network could live without. Closures and rationalisations, removal of floors and shrinking of sites have been the order of the day as retailers of all formats trim their sails to suit the prevailing ‘omnichannel’ winds of change. For Australia Post, this has not been an option. The Federal Government’s Australian Postal Corporation Act of 1989 mandates a network servicing the nation, meaning that the Post store count is largely fixed. Of course, these Post sites are much more than just shops. Providing services from postage to passports, banking to bill paying, the customer value of the services provided by these sites is shown by the queues running to the footpath in peak periods. And yet every site has its own floor space left over to retail. Over the years several attempts have been made to stock these shelves with a merchandise range that will justify the floorspace. But the random mixture of gifting and gadgets, impulse buys and small electrical appliances has never found its purpose — as attested by the always-present clearance bins and yellowtickets. Customer-first approach Given the chance to review the strategy, the Australia Post team has flipped the focus. Rather than seeking a range and floorplan designed just to eke out a few more dollars on the retail P&L, the team has found an approach that will do as much for its balance sheet of customer and community engagement as it does for the retail financials. The result is a case study in retail customer experience which puts the customer very much at the centre of the story. Along the way, the team has recalibrated every single touchpoint in the retail context. From providing 24 hour operational access, to reshaping the way people queue; from providing an ‘engine room’ for local e-commerce operators to conduct their fulfilment business, to redefining the term ‘marketplace’ back into a bricks-and-mortar context and so, so much more. The outcome is impressive, and yet it remains a work in progress. With cameras in place to study customer reactions and shopping behaviour, the team will take a truckload of data from Orange to feed the development of a bespoke version in each of the sites it rolls out from here. A ground-breaking retail experience and an ongoing learning experience. This is one concept that has something for everyone – customers and industry professionals alike. Change rooms and queues-busting apps But…back to the change rooms! Developed in consultation with key fashion retail customers – Myer and The Iconic have been mentioned – the idea behind in-store change rooms is that customers can try their purchases without even leaving the pick-up point, then execute a return on the spot if it’s not quite right. There’s a benefit there for the customer, as well as for the retail client in reducing damage and shrinking associated with delayed or poor quality returns. The other headline item, a full-time barista in store, is actually part of a much deeper fix for the biggest gripe of shopping at a Post store: the queue. Fixes here include breaking up the ‘great wall’ POS counter into a series of service stations, each of which is prioritised according to specific service needs. The back office operation is now open to customer view and a new POS system speeds up service delivery. Even so, the reality of high demand periods required a further fix, and so a system of registering via QR code for a place in a virtual queue was introduced. And while they wait for their SMS alert, the customer canenjoy their coffee and browse the product range. A focus on another key customer group – local small business and e-commerce operators – inspired a new ‘engine room’ that optimises the process of packing and sending and provides a tight range of exclusive products and deals tailored for small business. This product offering now includes a proper range of phones – the new iPhone 15 on display in Orange. The small business customer was also the focus of another breakthrough idea which literally hands over valuable retail space. Pop-up @ Post is a ‘merchant marketplace’ in the physical store, which gives local e-commerce brands and out of town merchants the opportunity to get in front of physical customers. This range, which is designed to rotate seasonally, dramatically increases the browsing value of the store experience. Australian-made focus The merchandise reboot is a story in its own right. Gone are the random gimmicks and off-brand air fryers and in its place is a tightly curated, strategic range that firmly plants ‘purpose’ at the heart of the ranging decision. Generic greeting cards are replaced with a unique art series range printed using Post’s expertise in stamps, featuring space for the artist to tell their stories and direct purchasers to their online shop. The Australian Makers Collection is a highlight, showcasing an eye catching range of gift-friendly items that has been developed in close partnership with the artisans behind the products. Again, there is a sense that these ranges will change with the seasons and pick up local themes and providers as the concept rolls out. Beyond these highlights there’s a rebooted 24 hour lockers facility that also facilitates packing and sending around the clock; a dedicated room for passport photography and a cool new hand-held POS for the curated ranges. Even the muzak has been rethought, with an AI-assisted system ensuring the playlist of Australian-only artist is piped to the store at the right volume to suit the ambient noise of the moment. The overriding sense is of a retail experience that is current, curated and cool. It is open and welcoming, entirely browsable and very much in tune with its community of customers. It’s a new retail age for Australia Post, and a learning opportunity for other brands to take from as well. A perfect excuse for a long weekend ‘retail road trip’ to Orange’s wine country.