Czech Post Extends Delivery Time for Economic Shipments to Three Days, Optimizing Postal Network

Beginning in July, Czech Post will extend the delivery time for economic postal shipments by one day, increasing it to three days. This adjustment is driven by a permanent decline in interest in sending postal shipments and the company’s efforts to optimize its postal network. Czech Post currently handles approximately 1.8 million postal shipments per day. The two-speed delivery system was introduced by the company in February 2020.

The slower delivery of economic shipments, previously taking two days, was tested at 17 branches in the spring and expanded to an additional 144 branches in June. As of July, this adjusted delivery method will be implemented across all 289 delivery branches (depots) throughout the Czech Republic. The pricing structure will also be adjusted accordingly, with regular priority letters costing 34 crowns and economic letters priced at 27 crowns from the middle of the year.

According to Czech Post’s data, approximately seven percent of clients currently opt for priority delivery, while the majority utilize the economic, albeit slower, delivery option.

In light of the sustained decline in interest for postal shipments and the impact of the DEPO Act, which transitioned two million entities from paper registered letters to digital communication through data boxes, the extension of the economic mode from D+2 to D+3 will come into effect on July 1, 2023. However, those who prefer priority delivery can still choose the unchanged D+1 option, ensuring faster delivery.

Czech Post is implementing cost-cutting measures this year to address deepening losses. This includes the closure of 300 branches and the dismissal of approximately 1,000 employees. Furthermore, the company is set to present a transformation plan by mid-year, envisioning its division into a branch operator providing essential services for the state and a commercial delivery joint-stock company. These changes aim to streamline operations and improve overall efficiency in response to evolving market demands and postal trends.

Article by Prague Forum