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Overview of Retail Market in Czech Republic

This overview provides insights into the dynamic development of the retail market in Czech Republic over the past 10 years, highlighting the shift from supplier dominance to customer dominance. It also discusses the establishment of more efficient and modern distribution channels by multinational supply companies. The market share and preferences of hypermarkets, supermarkets, and discount stores are comparable to Western European countries. The text is in English.

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Overview of Retail Market in Czech Republic

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  1. Retail in Czech Republic Radoslav Škapa

  2. Retail in Czech Republic (overview) • Retail market of consumer goods • Dynamical development in the past 10 years • Supplier’s dominance transformed into customer’s dominance • Multinational supply companies established new, moreefficient and modern distribution channels • The market proportion of hypermarkets, supermarkets and • discount stores is fully comparable to the Western • European countries, following actual tendencies

  3. Share on turnover TOP50 The share of turnover per proprietor type Coop State Local Internatioal Pramen: INCOMA Research

  4. THE MAIN SHOPPING PLACE FOR FOOD (development 1997-2007)

  5. THE MAIN SHOPPING PLACE FOR FOOD (development 1997-2007) Small shops

  6. Cumulative number of hypermarkets

  7. Large-area shops (hypermarkets, discounts and supermarkets) as a whole have been permanently strengthening their market share but have been losing customers in sensitive goods categories. Remain the main point for shopping of durable food products as packed food products, beverages (Consumers preferences are usually from 75% to 83% Loosing in fresh food products (bread, pastry etc.) or specialized assortment of drugstore and cosmetics products (which are interesting from point of view of the margin!!!) Tendencies in Czech retail 2008

  8. Market share and the size of municipality

  9. Floor space of hypermarkets in squere meters per 1000 inhabitants

  10. The differences in per capita purchasing powerin the Czech regions Source: Purchasing power in the Czech districts and municipalities 2005 (GfK + INCOMA)

  11. Cities with the highest shopping center space per 1,000 inhabitants * (Germany and France are not included in the statistics. Germany is available separately as “GfK GeoMarketing Retail Location Guide Germany“. The guide for France is currently under way. All retail location studies are updated annually.)

  12. Retail TOP10: process of concentration Pramen: INCOMA Research

  13. 70% 7% Retail TOP10: process of concentration (turnover on Czech market) Pramen: INCOMA Research

  14. TOP10 SKUPIN PODLE MALOOBCHODNÍCH TRŽEB (na základě předběžných výsledků r.2006) • Skupina Schwarz se stala největším českým maloobchodníkem • Celkové tržby TOP10 přesáhly 250 mld. Kč • Meziroční nárůst tržeb činí přes 30 mld. Kč Tržby jsou uvedeny včetně DPH * = odhad INCOMA Research Pramen: INCOMA Research + Moderní obchod

  15. The main shopping place for food- 2006

  16. Pramen: Shopping Monitor 2006 (INCOMA Research + GfK Praha)

  17. SHOPPING AS A WAY OF SPENDING TIME Source: SHOPPING MALL 2004 (INCOMA + GfK)

  18. Selling time restriction Shops open during red-letter day? J J L L K K Open untill 22:00? Non-stop GfK Praha, 2004

  19. WHAT IS IMPORTANT FOR YOU WHEN BUYING FOOD?

  20. A new contradictious tendency? Alternative trade channels • In accordance with PriceWaterhouse Coopers, more than 50% of food will be traded outside classical retail. (That is, in independent convenience stores, stalls, in marketplace or multiplex.) • Time-saving • People-centered not technology-centered

  21. A new contradictious tendency? Two-way shopping Why ATC? • Aging population • Single parent families, singles, one child f. • No time for shopping ATC in Czech rep. • Turnover 5-10 mdl. CZK per year • Rate of grow: 10 – 20%

  22. THE PER CAPITA PURCHASING PARITY LEVELIN CENTRAL EUROPE RELATED TO EU 15

  23. Shoppingbehaviour Prefer hypermarkets • 140 • Mobile pragmatic • 120 • Ambitious • Influenceable • 100 • Saver • 50 • 60 • 70 • 80 • 90 • 100 • 110 • 120 • 130 • Cautious Conservatie • Unpretentious stoic Buy avoidable things as well Buy necessary thing only • 80 • Loyal housewife • 60 Prefer smaller stores

  24. Trademarks of retail chainseconomical (best price)Clever (Billa)Euro Shopper (Albert, Hypernova)Mince (J. Meinl)Tesco výhodný nákup (Tesco)1 (Carrefour)365 (Delvita)standard quality for better priceAlbert (Albert)Carrefour (Carrefour)Delvita (Delvita)Hypernova (Hypernova)Spar (Interspar)Tesco (Tesco)special (selected range of products)Best farm (Kaufland)Selský dvůr (Hypernova)Chef Menü (Billa)Extra kvalita (Delvita)Quality first (Billa)Julius Meinl (J. Meinl)

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