The U.S. Postal Service is looking to fashion as it struggles financially.

The agency, which prides itself on delivering almost 40 percent of the world's mail, announced it plans to launch a clothing and accessories line and has signed a licensing deal with apparel company Wahconah Group, Inc.

"This agreement will put the Postal Service on the cutting edge of functional fashion," corporate licensing manager Steven Mills said in a statement.

"The main focus will be to produce Rain Heat & Snow apparel and accessories using technology to create 'smart apparel' - also known as wearable electronics."

USPS tripled its losses in 2012, losing $15.9 billion as the state-owned enterprise faces tough competition and what it calls onerous and unfair retirement funding requirements.

It has also said it will stop delivering mail on Saturdays to save money.

Wahconah, based in the U.S. state of Ohio, is setting up a showroom in New York City's garment district to showcase its creations to the fashion industry, USPS said. The products will at first be available only for men but a women's line is planned down the road.AP