Retailing in Croatia has been performing well since 2014; growth rates in retail sales have been in line with those for GDP, which points to the fact that personal consumption feeds the growth in retailing. It can be said that retailing has been experiencing a good period in Croatia for several years now.
Since July 2013, Croatia has been one of the EU’s 28 Member States. Apart from bringing obvious advantages, its membership of the EU also shows Croatia as a country that is considered as one of the least developed in the EU, with the lowest income.
The Croatian retailing landscape has some distinctive features stemming from a period not many European retailers had to experience. During most of the second half of the 20th century Croatia had an egalitarian, state-controlled retailing environment with top-down resource allocation.
Whilst small local players offer resistance from their locally strong positions, the once shining example of Croatian entrepreneurial spirit, Agrokor, is expecting its fate to be decided sometime during the year 2019. Having overextended itself financially in 2017, the company was too big to fail and subsequently protected from creditors by the government.
Despite showing modest results in financial terms, Croatian retailers have already built up a strong network of outlets and selling space. Some regions, particularly the capital Zagreb, show levels of selling space per inhabitant that are higher than in some Western European cities.
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This industry report originates from Passport, our Retailing market research database.