Mixed Retailers in Croatia

2020 IMPACT

Department stores and variety stores witness declining current value sales in response to the pandemic

Regardless of the COVID-19 pandemic, departments stores are a dying breed in Croatia. The only remaining network is Nama, which has two outlets, however, the company has been in bankruptcy for over a decade.

Mass merchandisers and warehouse clubs continue to be absent in Croatia

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 and the number slowly falling, Croatia also has a small total market size because of low per capita spend in retailing.

Offertissima doo continue to lead in 2020

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

RECOVERY AND OPPORTUNITIES

Department stores continue to decline, however this has little to do with the pandemic

After being negatively impacted due to the pandemic, department stores is expected to continue witnessing declining current value sales over the duration of the forecast period. However, this will likely have little to do with the aftermath of the pandemic.

Variety stores appeals to cash-strapped consumers post pandemic

Variety stores is not expected to make an immediate rebound post pandemic, and current value sales will not return to what they were in 2019 over the duration of the forecast period. However, unlike department stores, variety stores will witness growth over the forecast period.

Mass merchandisers and warehouse clubs unlikely to appear in Croatia in the future

Mass merchandisers and warehouse clubs thrive on big numbers, swapping low mark-ups for greater footfall. Although the region around the capital Zagreb could support a few of these stores in terms of population density, retailing capacities in Zagreb are already saturated and there are no signs that either of these formats will be entering the market in the near future, especially now in wake of the COVID-19 pandemic.