Mixed Retailers in Croatia

PROSPECTS

In Croatia, mixed retailers consists of only two channels

Two mixed retailers formats – mass merchandisers and warehouse clubs – are completely absent from Croatian retailing. One reason is the size of the market; besides being a small country population-wise, with only four million inhabitants, Croatia also has a small total market size because of low per capita spend in retailing.

Department stores on the way out

Department stores were a prestige retailing concept back in the 1980s, with virtually every town, even the smaller ones, having one right in the middle of the main high street. Department stores were not even chained, except for Nama, with most of them being independent department stores.

Variety stores is the new discovery

As a relatively new concept in Croatia, variety stores recorded respectable growth. Just a decade ago, there were virtually no variety stores.

COMPETITIVE LANDSCAPE

Category is now split almost 50:50 between variety and department stores

At the beginning of the review period, department stores were the overwhelming format, accounting for more than 90% of total sales, because variety stores had just started appearing. As their opposing directions of growth developed, the two are now matched in the size of their value sales.

Fragmented department stores

Marks & Spencer was the only notable international chain active in mixed retailers, but it left the market in 2015 as the concept did not seem to work in Croatia. The department stores competitive landscape is back to being fragmented, save for Nama, with two department stores located in Zagreb.

Leader in variety stores stands out

Using the first-mover advantage at the beginning of the review period, Offertissima took the variety stores landscape by storm. However, it was not the only player for long: the successful homeshopping company Studio Moderna – TV Prodaja decided to extend its homeshopping brand Top Shop into bricks-and-mortar retail as well.

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