Prague - Czech Post is in talks with a retail chain to provide basic postal services at supermarkets in smaller municipalities, chief executive Petr Sedláček said at a press conference on Tuesday 18 November.

The potential franchise partner is believed to be Flop, Coop or Žabka, but Sedláček refused to specify which one of the three it is.

"This is a model that works successfully in Germany and Austria," said Ivo Mravinac, communications director at Czech Post, adding that the first postal counters could open in supermarkets in the second half of 2009.

Czech Posts plans to close 178 branches in smaller municipalities and is looking for alternative ways to provide postal services there. Franchising postal services to local supermarkets is one of the options. The company is also testing mail delivery by a scheduled postal vehicle.

Interior Minister Ivan Langer said in early October that he would not authorise any closures of post offices unless they are based on an agreement between Czech Post and the town hall.