More bad news for UPS customers: 20 branches shut down — is your state on the list?

USPS confirms the closure of more than 20 Contract Postal Units across North Dakota, South Dakota, California, and Arizona, leaving customers with fewer convenient options.

Modified on:
September 15, 2025 7:59 am

USPS customers notice more closures

The United States Postal Service (USPS) is shutting more than 20 facilities in four states, a further adjustment for customers. They aren’t complete post offices but Contract Postal Units (CPUs)—smaller counters typically located within grocery stores or department stores that provide a convenient way to send letters and packages.

They will be completed by September 30, and some customers in neighborhoods are compelled to seek out other postal alternatives.

What are contract postal units?

Contract Postal Units are small postal offices located inside retail outlets such as grocery stores, pharmacies, or convenience stores. They are not operated directly by USPS employees but by the host company employees under contract to the Postal Service.

They are so popular because they make and quicken such mundane tasks as buying stamps, shipping packages, or sending out letters. To others, it is not waiting in line at bigger post offices.

But USPS or the host retail company in their contract agreements can choose to end the agreement on 120 days’ notice. That is what happened with the latest round of closures.

Why USPS is closing down these offices

A USPS spokeswoman said the closures are an example of restructuring the way the agency delivers services. Where there is a nearby full-service post office, USPS has chosen to close CPUs as a way of more effectively consolidating resources.

“Doing this allows us to more effectively meet our mission to serve our communities with efficient and dependable access to retail services,” the spokesperson said to Fox 10 Phoenix.

Though this might add up from a cost-cutting standpoint, the customers who use these smaller locations for convenience might not be exactly delighted.

States affected by the closures

USPS has already finalized CPU closures in North Dakota, South Dakota, California, and Arizona. Here’s how it breaks down:

North Dakota

In Bismarck, USPS services in three Family Fare grocery stores will end:

  • North 11th Street
  • South Washington
  • West Turnpike Avenue
  • South Dakota

In Sioux Falls, the services will be cut from the following Hy-Vee grocery stores:

  • 1601 South Sycamore Avenue
  • 1900 South Marion Road
  • 3000 South Minnesota Avenue
  • 3020 East 10th Street
  • 4101 South Louise Avenue

There will be additional closures in Lewis Drug stores in Sioux Falls:

  • 136 S. Phillips Avenue
  • 1301 E. 10th Street
  • 2700 W. 12th Street
  • 2901 S. Minnesota Avenue
  • 4409 E. 26th Street
  • 5500 W. 41st Street
  • 5830 E. Madison Street
  • 6109 S. Louise Avenue
  • 2525 S. Ellis Road

California

A 26-year-old CPU firm in Chinatown is set to shut down, according to CBS reports in Los Angeles’ Chinatown.

Arizona

In Phoenix, several small businesses that have CPUs within will probably close their postal branches, although the exact number has not been determined.

The larger context: USPS troubles

The closures follow as USPS is also experiencing drastic financial and operational woes. In February, Postmaster General Louis DeJoy warned Congress that USPS needed drastic reforms right away. Some of the challenges he listed:

  • Retail leases: USPS is struggling to renew leases for some 31,000 retail locations as real estate costs increase.
  • Counterfeit postage: The agency is battling an estimated $1 billion in counterfeit postage.
  • Federal mandates: Congressional mandates cost USPS between $6 billion and $11 billion annually.
  • Regulation: DeJoy lamented outdated price regulations that he estimates have accumulated over $50 billion in losses.

These forces make it more difficult for USPS to maintain smaller service facilities like CPUs.

What consumers can do

In the meantime, USPS is inviting affected customers to avail themselves of nearby full-service post offices. Yes, it may require farther commutes or longer lines, but the agency asserts that communities will not lose access to postal services.

But for elderly, disabled, or blue-collar families who had depended on CPUs in neighborhood stores, the closures may prove to be a disappointment.

Final thoughts

The shutdown of more than 20 Contract Postal Units in North Dakota, South Dakota, California, and Arizona is also a sign of USPS’s problems. While the agency argues that there are other post offices nearby to accommodate them, the shutdown will be a hassle for many patrons.

With the Sept. 30 deadline approaching, it’s clear that USPS patrons will have to adjust once more to a changing network. The closures can save dollars for the agency, but to those who relied on fast and convenient CPUs, the news is only one more cause for frustration.

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Lawrence Udia
Lawrence Udiahttps://polifinus.com/author/lawrence-u/
I am a journalist specializing in delivering the latest news on politics, IRS updates, retail trends, SNAP payments, and Social Security. My role involves monitoring developments in these areas, analyzing their impact on everyday Americans, and ensuring readers are informed about significant changes that could affect their lives.

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