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Closure of Contract Postal Units Sparks Concerns in Sioux Falls

{KXLG -Watertown, SD} The U.S. Postal Service (USPS) has confirmed it will terminate its agreements with several third-party retail partners in the Sioux Falls area, including Lewis Drug and Hy-Vee stores. The decision, which will end mail services at 14 locations, has prompted concern from residents and officials.

The USPS has provided a 120-day notice to eight Lewis Drug and six Hy-Vee stores in Sioux Falls. These locations operate as Contract Postal Units (CPUs), which are independent businesses that offer postal services under a contract with the USPS.

In a letter to Congressman Dusty Johnson, who had raised concerns about the closures, USPS Government Relations Representative Shaun K. Chang explained that the decision is part of the organization’s broader effort to increase efficiency and control costs. The USPS stated that it determined there is “no longer a compelling business or service rationale to pay for third-party contract service given our ample retail capacity in the area.”

The letter outlines that of the 14 affected locations, nine are within 3.6 miles of the Sioux Falls Main Post Office, three are within 4.7 miles of the Meadows Postal Store, and two are within five miles of post offices in Brandon, Tea, and Harrisburg.

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