Convenience stores continued to record growth in terms of both value sales and the number of outlets in 2018. Convenience store chains throughout the Czech Republic embarked on significant store modernisation in 2017, which continued in 2018.
Despite overall channel growth, the state of rural convenience stores continued to deteriorate in 2018, as many of them closed due to a lack of customers and rising labour costs. Independent but also chained store owners were not able to sustain operations without financial support from local or regional municipalities.
Convenience stores in the Czech Republic are characterised by a strong presence of franchises and alliances, which are increasingly used to expand brands locally. For instance, wholesalers have effectively utilised franchising strategies to reach the end consumer.
The chain of convenience stores under the brands Coop and Coop Tuty maintained its second place within convenience stores in 2018; however, its value share declined. Coop decided to no longer support loss-generating stores in rural areas.
An alliance of independent convenience stores under the brand Muj obchod continued its store expansion during 2018. The brand owner and leading wholesaler in the Czech Republic, Makro Cash & Carry, continued offering alliance members improved services, including marketing, product presentation support and, most importantly, products.
One of the most successful domestic brands in Czech retail, Hruska, stabilised its value share of convenience stores in 2018, despite negative developments regarding rural convenience stores. The company operates many of its own stores but also grants franchising rights to independent store owners.
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This industry report originates from Passport, our Retailing market research database.