Retailing in the Czech Republic
Euromonitor International's Retailing in the Czech Republic report offers insight into key trends and developments affecting the industry. The report examines all retail channels to provide sector insight. Channels include department stores, food retailers, health and beauty retailers, clothing and footwear retailers, home furniture and household goods retailers, durable goods retailers, and leisure and personal goods retailers. There are profiles of leading retailers, with analysis of their performance and the challenges they face. There is also analysis of alternative selling channels (kiosks, homeshopping, internet retailing, service stations, vending and direct selling, as available).
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Chapters: 12 | Tables: 90 | Publication date: Jul 2006
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Executive summary
Few major changes, some beneath the surface
The Czech retail market has appeared outwardly calm without any big shifts since the country's accession to the EU – prices are more or less stable and strong international players established for some time dominate the market. This apparently quiet state of affairs, however, covers changes developing beneath the surface.
The infrastructure of suppliers is rapidly changing – the market is being massively penetrated especially with goods imported from neighbouring EU countries (eg Poland and other new EU members). Numerous Czech companies on the other hand are concentrating more on export. Another wave of consolidation among retail chains in Central Europe is impending – the new series of acquisitions were started (Ahold acquired 58 Julius Meinl supermarkets and Reno-obuv 18 stores from La Halle).
The expansion of shopping centres is ending, as well as the interrelated boom of specialised non-food stores. Retailers are facing the new market situation by strengthening their competitiveness and escalating price wars.
Hypermarkets and discounters flourish
The dynamic expansion of discounters and hypermarkets is the main characteristic in the development of the Czech grocery retail network. While at the end of 2000 there were only 94 hypermarkets, the number grew to nearly 180 in 2005. The boom in discounters is also significant, with the number nearly doubling from 250 in 2000, to 476 2005. The expansion of discount stores was accelerated by the entry of German hard discounter Lidl in 2003.
Supermarkets seem to be experiencing a period of stagnation as they suffer from the growing competition from small hypermarkets and discount stores. Supermarkets have been undergoing reconstructing, and only the strongest chains will survive and create a new generation of supermarket.
Consolidation within non-grocery accelerates
Though the degree of consolidation has not reached the high level as in grocery retailing, the non-grocery sector has been consolidating at a faster pace every year.
Household incomes are growing every year and consumers are investing more in household goods, furniture, DIY products, consumer electronics and electrical appliances. Consumers are more willing to take on debt. As a result purchases on instalment and credit purchases face a great boom.
Boom in internet retailing
Internet sales grew strongly throughout the review period, albeit from a relatively low base. In 2005, sales grew by 42% in current value terms. Czech consumers are showing the highest interest in white goods and consumer electronics. The recent and well-developing trend visible within on-line sales is the growing share of instalment payment purchases and the use of credit cards.
New wave of consolidation is expected
Continued market concentration and the redistribution of market shares will characterise the Czech retail market. According to industry analysts, the top five retailers in 2006 will comprise Tesco (Tesco/Tesco OD), Schwarz (Kaufland/Lidl), Rewe (Billa/Penny Market), Ahold (Albert/Hypernova) and Globus (Globus/Globus Baumarkt).
Tesco consolidates its position, Carrefour withdraws
Carrefour and Tesco have agreed a store exchange which will see Tesco acquiring Carrefour's stores in the Czech Republic and Slovakia and Carrefour acquiring Tesco's stores in Taiwan. The move has been prompted by both retailers aiming to consolidate their positions in markets where they are already strong. The exchange, initially set for 1 January 2006 has been delayed, pending investigations by local and European anti-trust bodies.
In February 2006, trade press reported that Tesco had struck a deal with Edeka to acquire most of Edeka's 38 stores in the country. Tesco has also been linked with Ahold's Czech operations.
Table of contents
1. EXECUTIVE SUMMARY
Few major changes, some beneath the surface
Hypermarkets and discounters flourish
Consolidation within non-grocery accelerates
Boom in internet retailing
New wave of consolidation is expected
Tesco consolidates its position, Carrefour withdraws
2. OPERATING ENVIRONMENT
2.1 GOVERNMENT POLICIES
2.2 LEGISLATION
2.3 OPENING HOURS
2.4 RETAILING LANDSCAPE
Main street versus out of town
Shopping centres and malls
2.5 EMPLOYMENT IN RETAILING
Table 1 Employment in Retailing 2000-2005
Minimum wage
2.6 CASH-AND-CARRY/WAREHOUSE CLUBS
Table 2 Cash-and-carry/Warehouse Clubs: Sales by National Brand Owner: Sales Value 2004-2005
Table 3 Cash-and-carry/Warehouse Clubs: Number of Outlets by National Brand Owner: 2004-2005
3. RETAILING: RETAIL SALES
3.1 MARKET PERFORMANCE
Overview
Positive growth factors
Negative growth factors
Table 4 Sales in Retailing by Sector: Value 2000-2005
Table 5 Sales in Retailing by Sector: % Value Growth 2000-2005
4. RETAILING: COMPETITIVE ENVIRONMENT
4.1 LEADING RETAILERS
Multinationals consolidate their leadership
Domestic retailers join to survive
Table 6 Retail Company Shares: % Value 2004-2005
4.2 RECENT MERGERS AND ACQUISITIONS
Summary 1 Major Mergers and Acquisitions 2001-2005
4.3 CONCESSIONS
Summary 2 Summary of Leading Retailers and their Concessions 2005
5. PRIVATE LABEL
5.1 RETAILERS AND THEIR STRATEGIES
Popularity of private label flourishes
Strategies
Positioning
Penetration
Summary 3 Selected Retailers and their Private Label Products 2005
6. RETAILING: FORECAST MARKET PERFORMANCE
Overview
Positive growth factors
Negative growth factors
Table 7 Forecast Sales in Retailing by Sector: Value 2005-2010
Table 8 Forecast Sales in Retailing by Sector: % Value Growth 2005-2010
7. MARKET PERFORMANCE: GROCERY RETAILERS
7.1 OVERVIEW
Key trends and developments
Competitive environment
Forecast
Table 9 Grocery Retailers by Sector: Value 2000-2005
Table 10 Grocery Retailers by Sector: Units 2000-2005
Table 11 Grocery Retailers by Sector: Selling Space 2000-2005
Table 12 Grocery Retailers by Sector: % Value Growth 2000-2005
Table 13 Grocery Retailers by Sector: % Unit Growth 2000-2005
Table 14 Grocery Retailers by Sector: % Selling space growth 2000-2005
Table 15 Grocery Retailers Company Shares: % Value 2004-2005
Table 16 Grocery Retailers Brand Shares: % Value 2004-2005
Table 17 Grocery Retailers Forecasts by Sector: Value 2005-2010
Table 18 Grocery Retailers Forecasts by Sector: Units 2005-2010
Table 19 Grocery Retailers Forecasts by Sector: Selling Space 2005-2010
Table 20 Grocery Retailers Forecasts by Sector: % Value Growth 2005-2010
Table 21 Grocery Retailers Forecasts by Sector: % Unit Growth 2005-2010
Table 22 Grocery Retailers Forecasts by Sector: % Selling space growth 2005-2010
7.2 FOCUS SECTOR: DISCOUNTERS
Key trends and developments
Competitive environment
Forecast
Table 23 Discounters: Value Sales, Outlets and Selling Space 2000-2005
Table 24 Discounters: Value Sales, Outlets and Selling Space: % Growth 2000-2005
Table 25 Discounters Company Shares by Value 2004-2005
Table 26 Discounters Brand Shares by Value 2004-2005
Table 27 Discounters Company Shares by Outlets 2004-2005
Table 28 Discounters Brand Shares by Outlets 2004-2005
Table 29 Discounters Company Shares by Selling Space 2004-2005
Table 30 Discounters Brand Shares by Selling Space 2004-2005
Table 31 Discounters Forecasts: Value Sales, Outlets and Selling Space 2005-2010
Table 32 Discounters Forecasts: Value Sales, Outlets and Selling Space: % Growth 2005-2010
7.3 FOCUS SECTOR: CONVENIENCE STORES
Key trends and developments
Table 33 Number of Service Stations 2000-2004
Competitive environment
Forecast
Table 34 Convenience Stores: Value Sales, Outlets and Selling Space 2000-2005
Table 35 Convenience Stores: Value Sales, Outlets and Selling Space: % Growth 2000-2005
Table 36 Convenience Stores Company Shares by Value 2004-2005
Table 37 Convenience Stores Brand Shares by Value 2004-2005
Table 38 Convenience Stores Company Shares by Outlets 2004-2005
Table 39 Convenience Stores Brand Shares by Outlets 2004-2005
Table 40 Convenience Stores Company Shares by Selling Space 2004-2005
Table 41 Convenience Stores Brand Shares by Selling Space 2004-2005
Table 42 Convenience Stores Forecasts: Value Sales, Outlets and Selling Space 2005-2010
Table 43 Convenience Stores Forecasts: Value Sales, Outlets and Selling Space: % Growth 2005-2010
8. MARKET PERFORMANCE: NON-GROCERY RETAILERS
8.1 OVERVIEW
Key trends and developments
Competitive environment
Forecast
Table 44 Non-grocery Retailers: Value Sales, Outlets and Selling Space 2000-2005
Table 45 Non-grocery Retailers: Value Sales, Outlets and Selling Space: % Growth 2000-2005
Table 46 Non-grocery Retailers Company Shares by Value 2004-2005
Table 47 Non-grocery Retailers Brand Shares by Value 2004-2005
Table 48 Non-grocery Retailers Company Shares by Outlets 2004-2005
Table 49 Non-grocery Retailers Brand Shares by Outlets 2004-2005
Table 50 Non-grocery Retailers Company Shares by Selling Space 2004-2005
Table 51 Non-grocery Retailers Brand Shares by Selling Space 2004-2005
Table 52 Non-grocery Retailers Forecasts: Value Sales, Outlets and Selling Space 2005-2010
Table 53 Non-grocery Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2005-2010
8.2 FOCUS SECTOR: HEALTH AND BEAUTY RETAILERS
Legislation
Key trends and developments
Competitive environment
Forecast
Table 54 Health and Beauty Retailers: Value Sales, Outlets and Selling Space 2000-2005
Table 55 Health and Beauty Retailers: Value Sales, Outlets and Selling Space: % Growth 2000-2005
Table 56 Health and Beauty Retailers Company Shares by Value 2004-2005
Table 57 Health and Beauty Retailers Brand Shares by Value 2004-2005
Table 58 Health and Beauty Retailers Company Shares by Outlets 2004-2005
Table 59 Health and Beauty Retailers Brand Shares by Outlets 2004-2005
Table 60 Health and Beauty Retailers Company Shares by Selling Space 2004-2005
Table 61 Health and Beauty Retailers Brand Shares by Selling Space 2004-2005
Table 62 Health and Beauty Retailers Forecasts: Value Sales, Outlets and Selling Space 2005-2010
Table 63 Health and Beauty Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2005-2010
9. NON-STORE RETAILING: VENDING
Table 64 Vending: Value 2000-2005
Table 65 Vending: % Value Growth 2000-2005
Table 66 Vending Company Shares by Value 2004-2005
Table 67 Vending Brand Shares by Value 2004-2005
Table 68 Vending Forecasts: Value 2005-2010
Table 69 Vending Forecasts: % Value Growth 2005-2010
10. NON-STORE RETAILING: HOMESHOPPING
Key trends and developments
Competitive environment
Forecast
Table 70 Homeshopping: Value 2000-2005
Table 71 Homeshopping: % Value Growth 2000-2005
Table 72 Homeshopping Company Shares by Value 2004-2005
Table 73 Homeshopping Brand Shares by Value 2004-2005
Table 74 Homeshopping Forecasts: Value 2005-2010
Table 75 Homeshopping Forecasts: % Value Growth 2005-2010
11. NON-STORE RETAILING: INTERNET RETAILING
Key trends and developments
Competitive environment
Forecast
Table 76 Internet Retailing: Value 2000-2005
Table 77 Internet Retailing: % Value Growth 2000-2005
Table 78 Internet Retailing Company Shares by Value 2004-2005
Table 79 Internet Retailing Brand Shares by Value 2004-2005
Table 80 Internet Retailing Forecasts: Value 2005-2010
Table 81 Internet Retailing Forecasts: % Value Growth 2005-2010
12. NON-STORE RETAILING: DIRECT SELLING
Key trends and developments
Competitive environment
Forecast
Table 82 Direct Selling: Value 2000-2005
Table 83 Direct Selling: % Value Growth 2000-2005
Table 84 Direct Selling Company Shares by Value 2004-2005
Table 85 Direct Selling Brand Shares by Value 2004-2005
Table 86 Direct Selling Forecasts: Value 2005-2010
Table 87 Direct Selling Forecasts: % Value Growth 2005-2010