Retailing in the Czech Republic
Euromonitor International's Retailing in the Czech Republic examines whether recent high growth rates can be sustained in an economic downturn. Growth has been boosted by richer consumers spending more and some companies’ decision to sell a wider range of non-food products. Rising sales have supported expansion into new markets, new store formats and moves into private label products. However, the economic downturn has set some of these strategies back, this analysis looks at whether grocery retailers will continue to enjoy similar rates of growth in the future.
Tables: 186 | Publication date: Mar 2009
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Product coverage
Non-store retailing; Store-based retailing
Executive summary
Czech consumers become more careful about spending
With the increased cost of housing, electricity, medical care and drugs, and the rise in prices of grocery products in 2008 forced Czech consumers to save more and they spent less on expensive food and non-food products. Global economical crisis also negatively affected retail spending. Nevertheless, Czech consumers remain willing to get in debt and paying by instalments and credit card purchases maintains the positive growth in sales of household equipment, furniture, do-it-yourself goods, consumer electronics and electrical appliances.
Discounters flourishes and convenience stores is new rising format
The dynamic expansion of discounters and hypermarkets continues. Supermarkets underwent a phase of stagnation and they suffer from growing competition from small hypermarkets and discounters. Domestic cooperatives and alliances remain a key part of Czech retailing and they maintain a solid position. They are mainly strong in rural areas and in small towns. The position of independent grocery retailers has stabilised. Standard convenience stores were not established in the country until 2007. The Czech retail market entered a new phase of development when convenience stores gained space for expansion. This format holds great potential.
Consolidation of Czech retail market proceeds
In 2008, consolidation of the Czech retail market continued. Since 2006, five major chains have left the domestic market and it appears that it is not the end of the process. Intersport Austria became 100% owner of Drapa Sport in October 2007. In 2008, British Lifestyle Sports bought the City Sports chain and Rewe Group bought the competitive discounter chain, Plus Diskont. Though the degree of consolidation has not reached the high level it has in the grocery sector, the non-grocery segment is moving towards higher concentration.
Positive development of non-store retailing
Non-store retailing continues developing successfully in the country and gains more consumers via more effective promotional activities, such as special discount offers, loyalty cards, improved services and closer personal contact. Internet and direct selling perform the best. Homeshopping is the most successful within clothing, footwear and media products with on-line orders becoming more popular among consumers. Unpackaged soft and hot drinks take the majority of vending sales.
Flexible response of retailers will bring prosperous future for Czech retailing
Economical growth of the country is predicted to slow over the forecast period thanks to the global financial crisis. Household incomes will relatively grow every year but there will be large discrepancies in income between the specific groups of consumers. The price will remain the important factor and retailers will have to offer good prices to survive. Retail companies will respond flexibly to the changing market situation. Private label was well accepted by Czech consumers at the end of the review period and it will gain more room for development in years to come.
Table of contents
RETAILING IN THE CZECH REPUBLIC : MARKET INSIGHT
EXECUTIVE SUMMARY
Czech consumers become more careful about spending
Discounters flourishes and convenience stores is new rising format
Consolidation of Czech retail market proceeds
Positive development of non-store retailing
Flexible response of retailers will bring prosperous future for Czech retailing
KEY TRENDS AND DEVELOPMENTS
Convenience stores have green light
Retailers concentrate on smaller towns with smaller retail formats
Discounters will benefit from uncertain economical situation
Payments in instalments maintain sales of non-grocery products
Consolidation of Czech retail market continues
MARKET INDICATORS
Table 1 Employment in Retailing 2003-2008
MARKET DATA
Table 2 Sales in Retailing by Sector: Value 2003-2008
Table 3 Sales in Retailing by Sector: % Value Growth 2003-2008
Table 4 Sales in Retailing by Grocery vs Non-Grocery 2005-2008
Table 5 Sales in Store-Based Retailing by Sector: Value 2003-2008
Table 6 Sales in Store-Based Retailing by Sector: % Value Growth 2003-2008
Table 7 Sales in Non-store Retailing by Sector: Value 2003-2008
Table 8 Sales in Non-store Retailing by Sector: % Value Growth 2003-2008
Table 9 Retailing Company Shares: % Value 2004-2008
Table 10 Grocery Retailers Company Shares: % Value 2004-2008
Table 11 Grocery Retailers Brand Shares: % Value 2005-2008
Table 12 Non-Grocery Retailers Company Shares: % Value 2004-2008
Table 13 Non-Grocery Retailers Brand Shares: % Value 2005-2008
Table 14 Non-store Retailing Company Shares: % Value 2004-2008
Table 15 Non-store Retailing Brand Shares: % Value 2005-2008
Table 16 Forecast Sales in Retailing by Sector: Value 2008-2013
Table 17 Forecast Sales in Retailing by Sector: % Value Growth 2008-2013
Table 18 Forecast Sales in Store-Based Retailing by Sector: Value 2008-2013
Table 19 Forecast Sales in Store-Based Retailing by Sector: % Value Growth 2008-2013
Table 20 Forecast Sales in Non-store Retailing by Sector: Value 2008-2013
Table 21 Forecast Sales in Non-store Retailing by Sector: % Value Growth 2008-2013
APPENDIX
Operating environment
Cash and Carry/Warehouse Clubs
Table 22 Cash and Carry/Warehouse Clubs: Sales by National Brand Owner: Sales Value 2005-2008
Table 23 Cash and Carry/Warehouse Clubs: Number of Outlets by National Brand Owner: 2005-2008
DEFINITIONS
Sources
Summary 1 Research Sources
LOCAL COMPANY PROFILES - CZECH REPUBLIC
AHOLD CZECH REPUBLIC AS - RETAILING - CZECH REPUBLIC
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Ahold Czech Republic as : Key Facts
Summary 3 Ahold Czech Republic as : Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
Summary 4 Ahold Czech Republic as: Private Label Portfolio
COMPETITIVE POSITIONING
Summary 5 Ahold Czech Republic as : Competitive Position 2008
BAUMAX CR SRO - RETAILING - CZECH REPUBLIC
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Baumax CR sro: Key Facts
Summary 7 Baumax CR sro: Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
COMPETITIVE POSITIONING
Summary 8 Baumax CR sro: Competitive Position 2008
BILLA SPOL SRO - RETAILING - CZECH REPUBLIC
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Billa spol sro: Key Facts
Summary 10 Billa spol sro: Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
Summary 11 Billa spol sro: Private Label Portfolio
COMPETITIVE POSITIONING
Summary 12 Billa spol sro : Competitive Position 2008
GLOBUS CR KS - RETAILING - CZECH REPUBLIC
STRATEGIC DIRECTION
KEY FACTS
Summary 13 Globus CR ks: Key Facts
Summary 14 Globus CR ks: Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
COMPETITIVE POSITIONING
Summary 15 Globus CR ks: Competitive Position 2008
KAUFLAND CESKA REPUBLIKA VOS - RETAILING - CZECH REPUBLIC
STRATEGIC DIRECTION
KEY FACTS
Summary 16 Kaufland Ceska Republika vos : Key Facts
Summary 17 Kaufland Ceska republika vos: Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
Summary 18 Kaufland Ceska Republika vos: Private Label Portfolio
COMPETITIVE POSITIONING
Summary 19 Kaufland Ceska Republika vos: Competitive Position 2008
LIDL CR VOS - RETAILING - CZECH REPUBLIC
STRATEGIC DIRECTION
KEY FACTS
Summary 20 Lidl CR vos: Key Facts
Summary 21 Lidl CR vos : Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
COMPETITIVE POSITIONING
Summary 22 Lidl CR vos: Competitive Position 2008
OBI SYSTéMOVá CENTRáLA SRO - RETAILING - CZECH REPUBLIC
STRATEGIC DIRECTION
KEY FACTS
Summary 23 OBI Systémová centrála sro: Key Facts
Summary 24 OBI Systémová centrála sro: Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
COMPETITIVE POSITIONING
Summary 25 OBI Systémová centrála sro: Competitive Position 2008
PENNY MARKET SPOL SRO - RETAILING - CZECH REPUBLIC
STRATEGIC DIRECTION
KEY FACTS
Summary 26 Penny Market spol sro: Key Facts
Summary 27 Penny Market spol sro: Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
Summary 28 Penny Market spol sro : Private Label Portfolio
COMPETITIVE POSITIONING
Summary 29 Penny Market spol sro: Competitive Position 2008
PLUS DISCOUNT SPOL SRO - RETAILING - CZECH REPUBLIC
STRATEGIC DIRECTION
KEY FACTS
Summary 30 Plus Discount spol sro: Key Facts
Summary 31 Plus Discount spol sro: Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
Summary 32 Plus Discount spol sro : Private Label Portfolio
COMPETITIVE POSITIONING
Summary 33 Plus Discount spol sro: Competitive Position 2008
SPAR CR SRO - RETAILING - CZECH REPUBLIC
STRATEGIC DIRECTION
KEY FACTS
Summary 34 Spar CR sro: Key Facts
Summary 35 Spar Ceska obchodni spolecnost sro : Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
Summary 36 Spar CR sro: Private Label Portfolio
COMPETITIVE POSITIONING
Summary 37 Spar CR sro: Competitive Position 2008
TESCO STORES CR AS - RETAILING - CZECH REPUBLIC
STRATEGIC DIRECTION
KEY FACTS
Summary 38 Tesco Stores CR AS: Key Facts
Summary 39 Tesco Stores CR AS: Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
Summary 40 Tesco Stores CR AS: Private Label Portfolio
COMPETITIVE POSITIONING
Summary 41 Tesco Stores CR AS: Competitive Position 2008
HYPERMARKETS IN THE CZECH REPUBLIC
OVERVIEW
SECTOR DATA
Table 24 Hypermarkets: Value Sales, Outlets and Selling Space 2003-2008
Table 25 Hypermarkets: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 26 Hypermarkets Company Shares by Value 2004-2008
Table 27 Hypermarkets Brand Shares by Value 2005-2008
Table 28 Hypermarkets Brand Shares by Outlets 2005-2008
Table 29 Hypermarkets Brand Shares by Selling Space 2005-2008
Table 30 Hypermarkets Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 31 Hypermarkets Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
SUPERMARKETS IN THE CZECH REPUBLIC
HEADLINES
OVERVIEW
SECTOR DATA
Table 32 Supermarkets: Value Sales, Outlets and Selling Space 2003-2008
Table 33 Supermarkets: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 34 Supermarkets Company Shares by Value 2004-2008
Table 35 Supermarkets Brand Shares by Value 2005-2008
Table 36 Supermarkets Brand Shares by Outlets 2005-2008
Table 37 Supermarkets Brand Shares by Selling Space 2005-2008
Table 38 Supermarkets Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 39 Supermarkets Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
DISCOUNTERS IN THE CZECH REPUBLIC
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 40 Discounters: Value Sales, Outlets and Selling Space 2003-2008
Table 41 Discounters: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 42 Discounters Company Shares by Value 2004-2008
Table 43 Discounters Brand Shares by Value 2005-2008
Table 44 Discounters Brand Shares by Outlets 2005-2008
Table 45 Discounters Brand Shares by Selling Space 2005-2008
Table 46 Discounters Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 47 Discounters Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
CONVENIENCE STORES IN THE CZECH REPUBLIC
HEADLINES
OVERVIEW
SECTOR DATA
Table 48 Convenience Stores: Value Sales, Outlets and Selling Space 2003-2008
Table 49 Convenience Stores: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 50 Convenience Stores Company Shares by Value 2004-2008
Table 51 Convenience Stores Brand Shares by Value 2005-2008
Table 52 Convenience Stores Brand Shares by Outlets 2005-2008
Table 53 Convenience Stores Brand Shares by Selling Space 2005-2008
Table 54 Convenience Stores Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 55 Convenience Stores Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
FORECOURT RETAILERS IN THE CZECH REPUBLIC
HEADLINES
OVERVIEW
SECTOR DATA
Table 56 Forecourt Retailers: Value Sales, Outlets and Selling Space 2003-2008
Table 57 Forecourt Retailers: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 58 Forecourt Retailers Company Shares by Value 2004-2008
Table 59 Forecourt Retailers Brand Shares by Value 2005-2008
Table 60 Forecourt Retailers Brand Shares by Outlets 2005-2008
Table 61 Forecourt Retailers Brand Shares by Selling Space 2005-2008
Table 62 Forecourt Retailers Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 63 Forecourt Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
MIXED RETAILERS IN THE CZECH REPUBLIC
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 64 Mixed Retailers: Value Sales, Outlets and Selling Space 2003-2008
Table 65 Mixed Retailers: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 66 Mixed Retailers Company Shares by Value 2004-2008
Table 67 Mixed Retailers Brand Shares by Value 2005-2008
Table 68 Mixed Retailers Brand Shares by Outlets 2005-2008
Table 69 Mixed Retailers Brand Shares by Selling Space 2005-2008
Table 70 Mixed Retailers Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 71 Mixed Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
HEALTH AND BEAUTY SPECIALIST RETAILERS IN THE CZECH REPUBLIC
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 72 Health and Beauty Retailers: Value Sales, Outlets and Selling Space 2003-2008
Table 73 Health and Beauty Retailers: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 74 Health and Beauty Retailers Company Shares by Value 2004-2008
Table 75 Health and Beauty Retailers Brand Shares by Value 2005-2008
Table 76 Health and Beauty Retailers Brand Shares by Outlets 2005-2008
Table 77 Health and Beauty Retailers Brand Shares by Selling Space 2005-2008
Table 78 Health and Beauty Retailers Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 79 Health and Beauty Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
CLOTHING AND FOOTWEAR SPECIALIST RETAILERS IN THE CZECH REPUBLIC
HEADLINES
OVERVIEW
SECTOR DATA
Table 80 Clothing and Footwear Retailers: Value Sales, Outlets and Selling Space 2003-2008
Table 81 Clothing and Footwear Retailers: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 82 Clothing and Footwear Retailers Company Shares by Value 2004-2008
Table 83 Clothing and Footwear Retailers Brand Shares by Value 2005-2008
Table 84 Clothing and Footwear Retailers Brand Shares by Outlets 2005-2008
Table 85 Clothing and Footwear Retailers Brand Shares by Selling Space 2005-2008
Table 86 Clothing and Footwear Retailers Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 87 Clothing and Footwear Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
FURNITURE AND FURNISHINGS STORES IN THE CZECH REPUBLIC
HEADLINES
OVERVIEW
SECTOR DATA
Table 88 Furniture and Furnishings Stores: Value Sales, Outlets and Selling Space 2003-2008
Table 89 Furniture and Furnishings Stores: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 90 Furniture and Furnishings Stores Company Shares by Value 2004-2008
Table 91 Furniture and Furnishings Stores Brand Shares by Value 2005-2008
Table 92 Furniture and Furnishings Stores Brand Shares by Outlets 2005-2008
Table 93 Furniture and Furnishings Stores Brand Shares by Selling Space 2005-2008
Table 94 Furniture and Furnishings Stores Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 95 Furniture and Furnishings Stores Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
DIY, HOME IMPROVEMENT AND GARDEN CENTRES IN THE CZECH REPUBLIC
HEADLINES
OVERVIEW
SECTOR DATA
Table 96 DIY, Home Improvement and Garden Centres: Value Sales, Outlets and Selling Space 2003-2008
Table 97 DIY, Home Improvement and Garden Centres: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 98 DIY, Home Improvement and Garden Centres Company Shares by Value 2004-2008
Table 99 DIY, Home Improvement and Garden Centres Brand Shares by Value 2005-2008
Table 100 DIY, Home Improvement and Garden Centres Brand Shares by Outlets 2005-2008
Table 101 DIY, Home Improvement and Garden Centres Brand Shares by Selling Space 2005-2008
Table 102 DIY, Home Improvement and Garden Centres Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 103 DIY, Home Improvement and Garden Centres Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
ELECTRONICS AND APPLIANCE SPECIALIST RETAILERS IN THE CZECH REPUBLIC
HEADLINES
OVERVIEW
SECTOR DATA
Table 104 Electronics and Appliance Specialist Retailers: Value Sales, Outlets and Selling Space 2003-2008
Table 105 Electronics and Appliance Specialist Retailers: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 106 Electronics and Appliance Specialist Retailers Company Shares by Value 2004-2008
Table 107 Electronics and Appliance Specialist Retailers Brand Shares by Value 2005-2008
Table 108 Electronics and Appliance Specialist Retailers Brand Shares by Outlets 2005-2008
Table 109 Electronics and Appliance Specialist Retailers Brand Shares by Selling Space 2005-2008
Table 110 Electronics and Appliance Specialist Retailers Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 111 Electronics and Appliance Specialist Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
LEISURE AND PERSONAL GOODS SPECIALIST RETAILERS IN THE CZECH REPUBLIC
HEADLINES
OVERVIEW
SECTOR DATA
Table 112 Leisure and Personal Goods Specialist Retailers: Value Sales, Outlets and Selling Space 2003-2008
Table 113 Leisure and Personal Goods Specialist Retailers: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 114 Leisure and Personal Goods Specialist Retailers Company Shares by Value 2004-2008
Table 115 Leisure and Personal Goods Specialist Retailers Brand Shares by Value 2005-2008
Table 116 Leisure and Personal Goods Specialist Retailers Brand Shares by Outlets 2005-2008
Table 117 Leisure and Personal Goods Specialist Retailers Brand Shares by Selling Space 2005-2008
Table 118 Leisure and Personal Goods Specialist Retailers Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 119 Leisure and Personal Goods Specialist Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
VENDING IN THE CZECH REPUBLIC
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR INDICATORS
Table 120 Vending Machines 2003-2008
SECTOR DATA
Table 121 Vending: Value 2003-2008
Table 122 Vending: % Value Growth 2003-2008
Table 123 Vending Company Shares by Value 2004-2008
Table 124 Vending Brand Shares by Value 2005-2008
Table 125 Vending Forecasts: Value 2008-2013
Table 126 Vending Forecasts: % Value Growth 2008-2013
HOMESHOPPING IN THE CZECH REPUBLIC
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 127 Homeshopping: Value 2003-2008
Table 128 Homeshopping: % Value Growth 2003-2008
Table 129 Homeshopping Company Shares by Value 2004-2008
Table 130 Homeshopping Brand Shares by Value 2005-2008
Table 131 Homeshopping Forecasts: Value 2008-2013
Table 132 Homeshopping Forecasts: % Value Growth 2008-2013
INTERNET RETAILING IN THE CZECH REPUBLIC
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 133 Internet Retailing: Value 2003-2008
Table 134 Internet Retailing: % Value Growth 2003-2008
Table 135 Internet Retailing Company Shares by Value 2004-2008
Table 136 Internet Retailing Brand Shares by Value 2005-2008
Table 137 Internet Retailing Forecasts: Value 2008-2013
Table 138 Internet Retailing Forecasts: % Value Growth 2008-2013
DIRECT SELLING IN THE CZECH REPUBLIC
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR INDICATORS
Table 139 Direct Selling Agents 2005-2007
SECTOR DATA
Table 140 Direct Selling: Value 2003-2008
Table 141 Direct Selling: % Value Growth 2003-2008
Table 142 Direct Selling Company Shares by Value 2004-2008
Table 143 Direct Selling Brand Shares by Value 2005-2008
Table 144 Direct Selling Forecasts: Value 2008-2013
Table 145 Direct Selling Forecasts: % Value Growth 2008-2013