Traditional grocery retailers saw a modest recovery in 2021. At the onset of the COVID-19 pandemic, the Czech population increasingly favoured one-stop-shopping close to home, especially during peak periods of infection.
The majority of these independent retail outlets are classified as food and drink specialists and they were authorised to remain open and continue operating at full capacity throughout the lockdown period. This enabled them to benefit from the large number of consumers that switched to shopping in local, neighbourhood stores during the lockdowns.
The number of outlets within traditional grocery retailers channel continued to decline in 2021. This pattern was particularly noticeable within city centre locations and large retail parks which have suffered from a significant drop in footfall since the start of the pandemic.
The outlook for traditional grocery retailers remains uncertain. Due to rising inflation and an expected rise in the cost of living, many households may no longer be able to afford to shop in traditional grocery retailers such as butchers and bakeries due to the higher prices charged in these outlets compared to modern grocery retailers.
Traditional grocery retailers will likely find it difficult to compete on price with modern grocery retailers which benefit from economies of scale. The discounters channel in particular poses an existential threat to many grocery retailers due to its low-cost business model, which is proving increasingly popular with locals.
The continued decline in independent small grocers in rural areas combined with a rapid decline in stalls and kiosks is set to contribute to a further drop in outlet numbers over the forecast period, which is unlikely to be offset by the growth of food and drink specialists. Without government support for rural traditional grocery retailers many are likely to fall into ruin and disappear from the market, with Czech consumers increasingly looking for more modern facilities when shopping.
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Traditional grocery retailing is the aggregation of those channels that are invariably non-chained and are, therefore, owned by families and/or run on an individual basis. For Euromonitor traditional grocery retailing is the aggregation of three channels: Independent Small Grocers, Food/Drink/Tobacco Specialists and Other Grocery Retailers. While there can be modern (i.e. chained) food/drink/tobacco specialists or other grocery retailers, due to the store's presence in the channel, these stores are still considered as traditional for Euromonitor International.See All of Our Definitions
This report originates from Passport, our Traditional Grocery Retailers research and analysis database.
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