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I wouldn't say having a shop front is a conflict of interest and postal agents exist as is so I only see it as removing a piece of a public utility in favour of privatisation.
Generally speaking, privatising public infrastrucure causes issues and added expense for consumers, less stable jobs and removes the benefit of the public investment.
I wasn't referring to the privatisation, you said
The labour overlap of a parcel network and a storefront are completely different.
It didnt need to be privatised, but separating the two isnt a bad thing.