Wednesday, 23 April 2014

No retail chain in ČR exceeds 10% market share

29 November 2012

Prague, Nov 28 (CTK) - None of the large retail chains on the Czech fast-turning goods market has a market share higher than 10 percent and the Czech market with its low rate of concentration is thus unique in Europe, according to estimates of the firm Incoma GfK.

Retail chain Ahold with a 9.7 percent share was number one on the domestic market last year.

"In most countries, the largest retail chain controls 20 to 30 percent of the market, while in the Czech Republic it is less than 10 percent. The situation is similar as regards the three strongest chains. In most countries they control 40 to 60 percent of the market but in the Czech Republic it is only 28 percent," said Incoma GfK executive Tomas Drtina.

The five largest retail chains control 40.6 percent of the Czech fast-turning goods market and the ten largest chains less than 56 percent. Most Czechs live in districts where seven retail chains or more are active.

People spend less in one shopping and tend increasingly more to look for discounts and special offers. Branded goods sell better with discounts than private brands of retail chains. On the other hand, interest in more expensive premium goods is rising as well.

"This indicates that Czech clients are learning to appreciate the value of goods and do not only try to save at all costs," said Incoma analyst Zdenek Skala.

He believes that the economic crisis influences only partly the fall in the purchasing power of people but its psychological effect is even stronger. Consumer confidence in the future of the economy is thus decreasing.

"The fall in food purchases is not caused only by lower consumption but also by substituting certain categories of products by an alternative, for example tap water instead of bottled water," Skala added.

Study Incoma Shopper Typology shows that the differences among the individual groups of buyers are getting bigger. On the other hand, the offer of retail chains is becoming more similar. The reason is the fight for 'the average client' but there are only few such clients. This partly contributes to the market's saturation.

Market shares of 10 largest retail chains in 2011:

Company Shops Market share incl. wholesale (pct)
Ahold CR Albert 9.7
Kaufland CR Kaufland 9.3
Tesco Stores Tesco 8.1
Penny Market Penny Market 7.7
Makro Cash&Carry CR Makro 6.6
Coop Coop, Terno, Tuty, Jednota 6.5
Lidl CR Lidl 5.8
Billa Billa, BigBilla 5.8
Globus CR Globus 4.2
Spar CR Interspar, Spar, CitySpar 2.8

Source: Incoma GfK estimate

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