Retail in 2024: The big picture
Retail in the Czech Republic continued to see growth in current value sales in 2024. While inflationary pressure on prices caused many Czech households to spend less as their living expenses kept rising, this helped current value sales remain positive. In 2024, stabilisation was visible in the macroeconomic situation in the country, with a strong lowering of the inflation rate. Lower inflation meant consumers were more open to purchasing goods as price increases slowed.
Automation offers operating cost reductions
Convenience retailers in the Czech Republic are adapting to automation to gain a competitive advantage. Some are increasing their number of fully automated 24/7 self-service outlets, which are growing in presence and popularity. In addition, some convenience retailers opened their first such stores in 2024, joining CBA, Coop and Hruska, which have a number of fully automated stores operating 24/7.
Private label and price promotions gain weight as consumers look for value for money
Rising prices and a real drop in household incomes forced consumers to more often buy cheaper food or goods when available on special discounts. In the long term, establishments in the countryside or small towns are predicted to experience the biggest drops, forcing them to give way to large chains. In big cities, the appetite for shopping has not ebbed significantly, and retail chains continue to invest in their stores and open new outlets. However, the opposite situation prevails in villages and smaller urban areas, where local shops are closing more and more often.
What next for retail?
The Czech Republic, especially the capital city Prague, is very attractive for retail brand owners; it remains the main gateway to Central and Eastern Europe for many markets. It is considered one of the most attractive environments for international fashion and other companies. The presence of a large number of international companies is also the result of long-term growth in purchasing power, which showed signs of improvement again in 2024, compared with 2022 and 2023, which saw very high inflation and hikes in the cost-of-living for Czech households.
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Overview:
Understand the latest market trends and future growth opportunities for the Retail industry in Czech Republic with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Convenience Stores
- Discounters
- Hypermarkets
- Supermarkets
- Traditional Grocery Retailers
- Apparel and Footwear Specialist Retailers
- Electronics and Appliance Specialist Retailers
- Health and Beauty Specialist Retailers
- Home and Garden Specialist Retailers
- Department Stores
- Variety Stores
- Warehouse Clubs
- Direct Selling
- Homeshopping
- Vending
If you're in the Retail industry in Czech Republic, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Retail in Czech Republic report includes:
- Analysis of key retail trends
- Detailed segmentation of offline and online retail sales
- Historic channel sizes (retail value sales, outlet counts, and selling space)
- Company and brand market shares (retail value sales and outlet counts)
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Retail in Czech Republic?
- Which are the leading retailers in Retail in Czech Republic?
- How are products distributed in Retail in Czech Republic?
- How is the rise of e-commerce and the expansion of modern grocery retail impacting traditional retail?
- How significant are discounters and private label in Czech Republic?
- To what extent are sales shifting towards digital channels?
- What is the long-term outlook for bricks-and-mortar?
- How is macroeconomic and political uncertainty affecting the retail industry?
- What types of retailers are seeing the fastest growth in digital sales?
- What is the future of retail?
Retail in the Czech Republic
Retail in 2024: The big picture
Automation offers operating cost reductions
Private label and price promotions gain weight as consumers look for value for money
What next for retail?
Informal retail
Opening hours for physical retail
Seasonality
Shopping Season Name
Christmas
Easter
DISCLAIMER
Convenience Retailers in the Czech Republic
KEY DATA FINDINGS
Lower VAT on groceries spurs traffic through convenience retailers
The leading brand sees key acquisition activity
New brand has the potential to disrupt the category
More stable economic situation to boost demand through convenience retailers
Automation emerges as a key trend
Billa-OMV cooperation to add dynamism to forecourt retailers
Supermarkets in the Czech Republic
KEY DATA FINDINGS
Strong rise in outlets and economic stabilisation push consumers towards supermarkets
Billa expands to consolidate its leadership of supermarkets
Private label offer develops and grows in supermarkets
Healthy but slower sales and outlet development anticipated for supermarkets
Billa and Albert lead move into online supermarkets
Billa develops innovative, sustainable outlets
Hypermarkets in the Czech Republic
KEY DATA FINDINGS
Stagnation as consumers look for more convenient shopping locations
Kaufland leads as rivals focus on smaller grocery formats
New VAT rates impact hypermarkets
Discounters and supermarkets to continue to pressure hypermarkets
Investments in sustainability to lower operating costs and gain consumer goodwill
Omnichannel approach to help hypermarkets compete
Discounters in the Czech Republic
KEY DATA FINDINGS
Value for money positioning boosts discounters
Lidl and Penny Market dominate the landscape
Consumers look to price promotions and discounts
Strong value proposition and network development to support discounters’ performance
Lidl Pay paves the way for innovative payment methods in discounters
Private label to continue to gain currency in discounters
Small Local Grocers in the Czech Republic
KEY DATA FINDINGS
Large modern grocery retailers provide intense competition
Small local grocers struggle to remain viable
Taxation helps to shape performance
Wider coverage of modern retailers to intensify the pressure on small local grocers
Business alliances can help small local grocers stay afloat
24/7 shopping offers a competitive edge
General Merchandise Stores in the Czech Republic
KEY DATA FINDINGS
Department stores continue to lose favour
Variety stores grow coverage and appeal
Stagnation in department stores but dynamism in variety stores
The downward trajectory is set to continue in department stores
Variety stores to find equilibrium in the forecast period
Consolidation of the competitive landscape
Apparel and Footwear Specialists in the Czech Republic
KEY DATA FINDINGS
Demand improves as the economic situation stabilises
Outlet expansion and affordability shape competitive performances
Consumers wait for price promotions to save on purchases
Economic improvements to push the demand for apparel and footwear
Growing threat from retail e-commerce
Apparel specialists use loyalty programmes as a competitive tool
Appliances and Electronics Specialists in the Czech Republic
KEY DATA FINDINGS
Stabilisation following strong rebound from the COVID-19 slump
Datart is set to strengthen its leading position in the competitive landscape
Outlet network expansion boosts retail value shares
Less positive outlook for physical specialist retailers
The online space is set to grow in importance
Discounts and private label to stimulate purchases
Home Products Specialists in the Czech Republic
KEY DATA FINDINGS
More stable economic situation renews home improvement and garden projects
Difficult housing market dampens traffic in homewares and home furnishing stores
The leading players push omnichannel strategies
Pet shops and superstores to benefit from economic improvements and innovation in retail
Improving housing market to boost homewares and home furnishing stores
Innovation to drive ideas and sales
Health and Beauty Specialists in the Czech Republic
KEY DATA FINDINGS
Beauty specialists see fast retail value growth and an upturn in outlet numbers
Personalisation and natural trend spur health and personal care stores
Consumers can choose from a wide array of specialist retailers
Slower retail value growth anticipated as maturity sets in
Demographic and lifestyle trends to sustain demand for pharmacies and optical goods stores
Convenience to drive innovation in pharmacies
Vending in the Czech Republic
KEY DATA FINDINGS
Improving economic conditions fail to ignite vending in 2024
Drinks players remain the leaders in vending
VAT change hikes prices and hurts vending’s main category
Rebound anticipated as convenience gains currency in a more stable economic climate
Investment to continue to push Mixa Vending
Innovation in product offer to add dynamism to vending
Direct Selling in the Czech Republic
KEY DATA FINDINGS
Consumers return to direct selling as the economic situation improves
Expanding seller network spurs Mary Kay
Avon’s troubles in the US impact the Czech branch
Personal relationships to remain a key touchstone in direct selling
Online shift blurs channel lines
Sustainability to shape company marketing
Retail E-Commerce in the Czech Republic
KEY DATA FINDINGS
Hectic lifestyles and economic stabilisation boost e-commerce
Strong company activity intensifies the competitive landscape
Alza develops and expands to retain its leading position
Innovation and company activity to shape e-commerce
M-commerce to continue to gain momentum
Growing challenge to Alza’s brand leadership
The following categories and subcategories are included:
Retail
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- Convenience Stores
- Forecourt Retailers
- Supermarkets
- Hypermarkets
- Discounters
- Warehouse Clubs
- Food/Drink/Tobacco Specialists
- Small Local Grocers
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- Department Stores
- Variety Stores
- Apparel and Footwear Specialists
- Appliances and Electronics Specialists
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- Home Improvement and Gardening Stores
- Homewares and Home Furnishing Stores
- Pet Shops and Superstores
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- Beauty Specialists
- Pharmacies
- Optical Goods Stores
- Health and Personal Care Stores
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- Bags and Luggage Specialists
- Jewellery and Watch Specialists
- Sports Goods Stores
- Traditional Toys and Games Stores
- Other Non-Grocery Retailers
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- Fashion Vending
- Health and Beauty Vending
- Appliances and Electronics Vending
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- Alcoholic Drinks Vending
- Hot Drinks Vending
- Soft Drinks Vending
- Tobacco Products Vending
- Foods Vending
- Home Products Vending
- Other Products Vending
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- Apparel and Footwear Direct Selling
- Personal Accessories Direct Selling
- Eyewear Direct Selling
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- Beauty and Personal Care Direct Selling
- Consumer Health Direct Selling
- Tissue and Hygiene Direct Selling
- Appliances and Electronics Direct Selling
- Drinks and Tobacco Direct Selling
- Foods Direct Selling
- Home Products Direct Selling
- Other Products Direct Selling
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- Apparel and Footwear E-Commerce
- Personal Accessories E-Commerce
- Eyewear E-Commerce
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- Beauty and Personal Care E-Commerce
- Consumer Health E-Commerce
- Tissue and Hygiene E-Commerce
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- Consumer Appliances E-Commerce
- Consumer Electronics E-Commerce
- Toys and Games E-Commerce
- Drinks and Tobacco E-Commerce
- Foods E-Commerce
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- Home Care E-Commerce
- Home and Garden E-Commerce
- Pet Care E-Commerce
- Other Products E-Commerce
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- First-Party (1P) Marketplace E-Commerce
- Third-Party (3P) Marketplace E-Commerce
- Grocery E-Commerce
- General Merchandiser E-Commerce
- Apparel and Footwear Specialist E-Commerce
- Appliances and Electronics Specialist E-Commerce
- Home Products Specialist E-Commerce
- Health and Beauty Specialist E-Commerce
- Leisure and Personal Goods Specialist E-Commerce
- Other E-Commerce Retailers
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Retail
Retail is the sale of new and used goods to consumers from a business for personal or household consumption from retail outlets, kiosks, market stalls, vending, direct selling and e-commerce. Retail is the aggregation of Retail Offline and Retail E-Commerce. Excludes specialist retailers of motor vehicles, motorcycles, vehicle parts. Also excludes fuel sales, foodservice sales, rental transactions, and wholesale sales (e.g. Cash and Carry). Sales value excluding or including VAT/Sales Tax. Retail also excludes the informal retail sector. Informal retailing is retail trade which is not declared to the tax authorities. Informal retailing encompasses (a) sales generated by unregistered and unlicensed retailers, i.e. retailers operating illegally, and (b) any proportion of sales generated by a registered and licensed retailer that is not declared to the tax authorities. Unregistered and unlicensed retailers operate predominantly (although not exclusively) as street hawkers or operate open market stalls, as these channels are harder for the authorities to monitor than permanent outlets. Activities in the illegal market, which is usually understood to refer to trade in illegal, counterfeit or stolen merchandise, are included within our definition of informal retailing. Activities in the “grey market”, which is usually understood to refer to trade in legal merchandise that is sold through unauthorized channels – for example cigarettes bought legally in another country, legally imported, but sold at lower prices than in authorized channels – will be included as informal retailing if no tax is paid on sale by the retailer. However if the retailer pays tax – for example on cigarettes bought legally in another country but sold at a lower price than standard – the sale is included within formal retail.
See all of our definitionsWhy buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This report originates from Passport, our Retail research and analysis database.
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