Postal Service loses $677 million in May as volume declines

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Washington, D.C.—Reflecting the continuing shrinkage of direct mail marketing and the changing communication habits of the American public, the U.S. Postal Service reported a net loss of $677 million for May, bringing to $3.4 billion its total losses in the current fiscal year.

In addition, the USPS reported it processed 2.8 billion fewer pieces of mail in May, compared with the same month in 2008.

The USPS is on track to lose about $6 billion in its fiscal year, which ends Sept. 30.

To help stem the tide of losses, the USPS has launched a “summer sale” on postage for any increase in bulk Standard Mail volume, a form of seasonal pricing that the direct marketing industry has long requested. Mailers are being offered discounts of 20% to 30% through Sept. 15 for mail volume in excess of their past mailings.

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