The Australia Post plans to take advantage of the digital mailing craze and in 2011 targets to open an online retail store.

In a statement, the Australia Post said this would compliment their existing parcel service business, which delivered modest pre-tax profits at $103 million, said executive Mr. Ahmed Fahour said today.

In spite the tough times experienced by the global parcel service, the government-owned company's prudence and the high value of the Australian dollar had allowed the company to take in some profit gains though revenues was down in the fiscal year 2009-2010.

Mr. Fahour noted that the mail volumes have continuously dropped amidst rising costs, thus, squeezing margins.

''For postal operators around the world, we are all experiencing a huge degree of difficulty, a very tough operating environment,'' Mr. Fahour said.

He said since the financial crisis hit in 2008, the business had so far recovered in the second half of 2009, following a ''really tough operating environment.''

He said the postal service business is doing fairly well this fiscal year 2010-2011, and the economy's growth is so far providing businesses a boost especially in Australia and nearby Asia-Pacific countries, where bulk of mails are derived from and delivered to.

He noted that a noticeable indicator that economic conditions are improving in the domestic front is the increase in advertising from companies and businesses. Some have even ventured in direct mail marketing tactics and others digitally.

Mr. Fahour added that what the company to take advantage of is the recent trend in online shopping as a direct benefit of the increasing value of the Aussie dollar. He said some have preferred the online convenience of shopping and transacting other business.