Eastern Europe

Muted performance for general merchandise in 2023

High inflation has led to a much weaker economy in 2023, with the increased costs of living benefiting discounters in the Czech Republic. As household spending tightened, price became the overriding factor when purchasing most household goods. Czechs…

Discounters in Bulgaria were the best performing grocery retailers in 2023. With inflation still being high, consumers were price sensitive and prioritised value for money. As such, discounters registered a moderate increase in constant value sales.…

Direct selling in the Czech Republic experienced a surge in popularity during the COVID-19 pandemic when physical outlets were closed. With online retailers still underdeveloped, direct sellers were able to absorb some of the retail needs of Czechs.…

Direct selling registered a fall in current value sales in Bulgaria in 2023. Both high inflation and a shift away from direct selling to e-commerce led to a drop in sales, as e-commerce also provides the convenience of direct delivery. In fact,…

Convenience retailers in the Czech Republic are suffering amid retail price increases as locals are searching for the best value and price when shopping. When it comes to price, convenience retailers are unable to compete with larger retailers and so…

2023 was not a good year for convenience retailers in Bulgaria. With inflation still being high, consumers cut back on spending in convenience retailers, as prices tend to be higher than in other grocery retailers. In addition, there is a degree of…

With minimal additional public investments and moderate business spending on away-from-home tissue and hygiene products in Bosnia and Herzegovina, the category witnessed marginal volume growth in 2023. Significant price increases were also an issue…

HP Tronic Zlin spol sro has consolidated its lead among appliance and electronics specialists in the Czech Republic, after Datart acquired Euronics in 2023. Some Euronics locations have been closed, whilst some have been transferred to Datart, thus…

Performance was muted in 2023 for appliances and electronic specialists in Bulgaria, with minimal current value growth, and constant value sales falling. Continuing rising prices cut into profit margins and reduced consumers’ purchasing power. As…

Apparel and footwear in the Czech Republic witnessed steady volume and current value growth in 2023 as shopping patterns started returning to normality post-pandemic. Price increases were also a factor underpinning current value growth, with this…

With inflation still being an issue, though apparel and footwear specialists in Bulgaria registered an increase in current value sales, constant value sales fell, as continuing rising costs cut into profit margins. There was also a slight decline in…

Street stalls/kiosks has historically been a particularly strong consumer foodservice channel in Ukraine, with it being the largest channel in terms of number of transactions prior to the pandemic. Since 2020 the channel has been under significant…

Street stalls/kiosks was among the better performing areas of Poland’s foodservice market in 2023, in part because comparatively low prices ensured it was somewhat less exposed to the cost-of-living crisis. Given the importance of on-the-go…

Self-service cafeterias in Ukraine continues to be a highly fragmented category, mostly consisting of no-frills establishments serving lunchtime offerings. Most of these establishments are fairly traditional with less reliance on technology than…

Self-service cafeterias was one of the strongest performers among the main foodservice categories in Poland in terms of growth in transactions and current value sales in 2023. Like limited-service restaurants, it weathered the cost-of-living crisis…

Russia’s war in Ukraine has created challenging economic conditions and a difficult operating environment which has presented significant obstacles for players operating within limited-service restaurants. Sales plummeted in value and volume terms in…

Limited-service restaurants in Poland saw growth in transactions and current value sales slow in 2023 as stubbornly high inflation continued to drive up menu prices and make consumers more cautious in their spending habits. However, the downturn was…

Full-service restaurants saw a partial recovery in 2023 but sales remained well below 2021 levels as many operators continued to struggle due the difficult conditions in Ukraine since Russia’s invasion. Their higher menu prices compared to…

While full-service restaurants in Poland continued to post growth in current value sales in 2023, this was primarily due to price hikes imposed to offset rising costs amidst stubbornly high inflation. Transactions declined slightly as falling…