July 17, 2025

By The Dakota Scout

The United States Postal Service is shuttering its satellite retail locations in the Sioux Falls area. And that’ll leave just two locations in South Dakota’s largest city to buy postage for postal-carried packages.

Visitors to Lewis Drug and Hy-Vee stores across the region are being greeted with alerts that the retail chains will no longer be offering mailing services beginning this fall.

Signs hung on entry doors at Lewis Drug stores this week state that the retailer will no longer be selling postage or mailing packages, effective Sept. 30. And when reached by phone, a worker with a Hy-Vee in southern Sioux Falls told The Dakota Scout on Wednesday that the closure is companywide for the grocer’s contract postal units, or CPUs. The USPS counters within private retail locations are operated by employees of the retailer.

That leaves just two locations where people can get postage for packages and letters in Sioux Falls, according to the USPS website: the post offices at 320 S. Second Ave. and 2501 S. Louise Ave.

A USPS spokesperson said in an email to The Dakota Scout on Wednesday that the federal postal agency has “exercised our right (to close CPU locations) where nearby post offices that are operated by the Postal Service are capable of serving the community directly.”

The spokesperson went on to say that the move “better enables us to fulfill our commitment to serve our communities with efficient and reliable access to retail services,” although she did not address direct questions from The Scout about whether staffing at the two post offices will be increased as a result of the CPU closures.

USPS is shuttering satellite retail locations in other parts of the country as well.

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