Distribution Networks in the Czech Republic
Types of Outlet
- Department stores (in big cities)
Clothing, Cosmetics, Jewelry, Food. No parking possibilities. Sometimes with restaurants. In city centers
Bila Labut in Prague, Kotva in Prague, Laso in Ostrava
Mostly in the framework of big shopping centers; on the side of many other shops, restaurants and also combined, in last few years, with entertainment centre. On the outskirt of bigger cities.
Tesco, Hypernova, Globus
Main assortment of food, drinks, cosmetics. Possibility of parking. Also in smaller cities.
Billa, Albert, Kaufland
- Discount stores
No brands, strong accent on price, possibility of parking. Usually in smaller cities or in less important locations of big cities
Lidl, Plus Discount, Penny market
- Home centers
Wide assortment of goods concerning building, gardening, house Possibility of parking. Sometimes in the framework of shopping ceners.
OBI, Bauhaus, Baumax, Hornbach Baumarkt
- Drug Stores
Very popular. Personal hygiene products, Cosmetics, Beauty products, Detergents, Sweets and Drinks. Mostly around city centers. Almost all offer also photo service.
Schlecker, Rossman, DM
- Electro divices
TV, audio, video, DVD, household devices. Mostly they are situated to the shopping centers.
Datart, Electro World, Okay
- Other shops
Specialized. Situated to the shopping centers.
Shoes: Bata, Deichmann, Reno
Fashion: Kenvelo, H&M
Sport equipment: Sportissimo, Drapa, GigaSport
Big shopping areas on the suburbs of big cities
IKEA, ASKO, KIKA, Sconto
Evolution of the Retail Sector
- Growth and Regulation
The principal economic zones of the country are concentrated around the capital Prague and in metropolitan cities like Usti nad Labem and Plzen in the west and Brno and Ostrava in the east.
The distribution market is currently booming due to modernization of the sector and the increase of the purchasing power of the population. Czech retail business is still growing more than 4 % per year.
- Market Shares
The distribution structure in the Czech Republic increasingly resembles to western countries, i.e. the dominance of big groups that disadvantages the traditional trade. In fact, until 1989, commercial distribution was under State control, but today it is entirely privatized. In 1997, the hypermarkets represented only 1% of retail business while traditional businesses represented 49%. Today, the trend has completely changed and hypermarkets largely dominate with 44% of retail trade, while the market-share of traditional traders is still falling down.
Today, the distribution market in the country is dominated by UK, Austrian, and German companies which were the first ones to enter the Czech market. A majority of Czech companies have gone bankrupt or have been taken over as they lost their competitive edge. The biggest retail operators are: TESCO, METRO (Makro), AHOLD (represented by brand Hypernova and Albert), KAUFLAND, REWE (Billa, penny), LIDL, PLUS DISKONT.
Shopping centers and malls have also had great success: 80% of the population living in big cities visits them. At these centers supermarkets rub shoulders with luxury stores.
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