KUALA LUMPUR (May 8): Loss-making courier outfit Pos Malaysia Bhd said it has opened its first convenience store Pos Shop along Jalan Tuanku Abdul Rahman here, as part of its strategic transformation journey.

The group, which operated 541 post offices and over 200 more Pos Laju and mini branches as at last year, said in a statement that the convenience store is “leveraging on its unrivalled reach and retail footprint”.

“The new concept store serves as a model for future developments in selected post offices in Malaysia, with the aim to create an even more exciting in-store experience and offer further retail convenience at the post office,” Pos Malaysia said.

Pos Shop “offers a wide selection of beverages, desserts, snacks, and personal care products at a very competitive price”, the statement said.

The new venture came as the courier service provider continued to explore avenues to reverse half a decade of losses, following declining mail volume and stiff competition in the parcel delivery market.

Following its latest transformation plan mooted in 2021, the group has narrowed operating costs, and adjusted its capacity and network to address its high proportion of fixed costs while addressing unprofitable segments.

The group reports its performance across four main segments — postal, and logistics, both of which continued to bleed in the financial year ended Dec 31, 2022 (FY2022), as well as aviation, and others.

In FY2022, Pos Malaysia's net loss narrowed to RM167.67 million from RM335.73 million net loss the year earlier on smaller postal segment losses before, as revenue declined 10.63% to RM1.96 billion, from RM2.19 billion.

Shares of Pos Malaysia settled unchanged at 55 sen at noon market break, giving the group a market capitalisation of RM430.53 million.