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A postal unit operated by the town of Atherton is set to close this summer after the U.S. Postal Service decided to end its contract as part of a larger cost-cutting plan, town staff said Monday, April 6.
Since 1988, Atherton’s postal annex located in the town hall has sold stamps, mailed packages and sent certified letters under a contract with USPS. While it didn’t offer the full range of services available at other post offices, the Atherton location almost always had shorter lines.
“The Atherton Postal Annex was essentially convenient for not only Atherton residents but the wider community as well,” Town Manager George Rodericks said in an email. “Most often, these services were provided with zero lines. Around the holiday season, we could get a line of three to five people, but that’s often far less than you would encounter at the full post office.”
USPS notified the town on Feb. 25 that its contract would end as part of a nationwide effort to consolidate and eliminate some contract postal units. Although USPS pays local operators to run the facilities, the Atherton annex has almost certainly been operating in the red. After accounting for supplies, Atherton only received $1,225 for operating the post unit in fiscal year 2025, down from $26,660 in fiscal year 2011.
Payments from the Postal Service are based on a percentage of total sales, which have steadily fallen. As recently as 2004, Atherton sold more than $100,000 worth of stamps in a year.
“Revenues are nowhere near where they used to be,” Rodricks said. The town does not track the cost of staff time to operate it because it’s handled by the town receptionist, who has other responsibilities. If that was factored in, the town likely loses money on the postal unit.
Despite the cost, the town kept operating the annex because its residents valued the convenience. Customers could mail letters and parcels, send priority and media mail, insure shipments and use certified mail services. Mail and packages were picked up twice daily.
Once Atherton’s postal unit closes on June 25, mail will be collected just once a day at Atherton Town Hall as part of its regular USPS service, and the town will no longer sell postage.
Town staff tried “everything we could” to preserve the contract, but to no avail, according to Rodericks. Across the county, several contract units are being phased out in areas that are served by other post offices. Nationwide, USPS operated 1,356 contract postal units in fiscal year 2025, down from more than 2,000 in 2020.
“Doing so enables us to continue to fulfill our commitment to serve our communities through USPS-operated retail facilities,” Postal Service spokesperson Kristina Uppal said about closing contracted postal units. She did not respond to requests for further comment.
The Postal Service has been under financial pressure for years, and posted a $9 billion loss in fiscal year 2025. USPS officials warned regulators that it could run out of funds as early as October.
According to the town, there are four post offices within 2 miles of Atherton Town Hall. Find them at tools.usps.com/locations.
