Czech Republic Retail Report

Published 27 August 2015

  • 66 pages
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  • Includes 3 free updated quarterly reports
$1,295.00
Czech Republic Retail Report

BMI View: The mature Czech retail sector will benefit heavily from the economic growth until 2019. Rising real GDP will translate to lower unemployment and higher household incomes. As consumer confidence rises, retailers will see their incomes grow. High saturation of the retail market will limit network expansion opportunities and major players will be investigating merger and acquisition opportunities.

In European Union, which has been dealing with major challenges, including the Greek debt impasse, rising illegal immigration and China downturn in Q2-Q3 2015, the Czech Republic emerged as the bloc's fastest growing economy. With a projected real GDP growth rate of 3.5% it is set to lead the economic union of 28 countries. This follows a contraction in 2012-2013 and a modest 1.9% expansion in 2014 and is a sign of a strong and consistent recovery. The economic recovery, which started last year, is already visible across a variety of indicators relevant for retailers: unemployment rate will have declined from 7.0% to 5.7% during 2014-2015, while retail sales grew by the highest rate in seven years in July 2015. The Czechs are becoming more willing to big large purchases, such as cars, whose sales grew by the fastest pace since early 2008 this summer. Growing employment allows the Czech households to accumulate more savings and make more non-essential purchases bringing growth to clothing and household goods sub-sectors. The decline of oil prices, which translated into cheaper fuel, increased disposable incomes for the Czechs and is helping groceries and non-food retailers.

The recovery of the retail sector will manifest itself in ways different than network expansion. No new shopping centre construction is expected to start this year in the whole country suggesting about the supply of mall retail area. Non-food retailers are able to choose from around 100 shopping centres in the Czech Republic, however, most of the retail brands already have a wide presence...

BMI Industry View
7
SWOT
9
Political
11
Economic
12
Industry Forecast
13
Headline Retail Forecast
13
Table: Total Household Spending (Czech Republic 2012-2019)
14
Table: Retail Sector Spending, % Of Total (Czech Republic 2012-2019)
15
Table: Retail Sector Spending, % of GDP (Czech Republic 2012-2019)
15
Table: Headline Retail Sector Spending (Czech Republic 2012-2019)
16
Retail Sector Forecast
18
Food, Drink & Tobacco
18
Table: Food, Drink & Tobacco Spending (Czech Republic 2012-2019)
19
Clothing & Footwear
20
Table: Clothing & Footwear Spending (Czech Republic 2012-2019)
20
Household Goods
20
Table: Household Goods Spending (Czech Republic 2012-2019)
21
Personal Care
22
Table: Personal Care Spending (Czech Republic 2012-2019)
22
Household Numbers and Income Forecast
23
Table: Household Income Data (Czech Republic 2012-2019)
24
Table: Labour Market Data (Czech Republic 2012-2019)
26
Demographic Forecast
27
Table: Total Population (Czech Republic 2012-2019)
28
Table: Population: Babies (Czech Republic 2012-2019)
28
Table: Population: Young Children (Czech Republic 2012-2019)
28
Table: Population: Children (Czech Republic 2012-2019)
29
Table: Population: Young Teens and Older Children (Czech Republic 2012-2019)
29
Table: Population: Young People (Czech Republic 2012-2019)
29
Table: Population: Older Teenagers (Czech Republic 2012-2019)
30
Table: Population: 21yrs + (Czech Republic 2012-2019)
30
Table: Population: Young Adults (Czech Republic 2012-2019)
30
Table: Population: Middle Aged (Czech Republic 2012-2019)
31
Table: Population: Urban (Czech Republic 2012-2019)
31
Macroeconomic Forecasts
32
Economic Analysis
32
Industry Risk Reward Index
35
Central And Eastern Europe Risk/Reward Index
35
Table: Central And Eastern Europe - Retail Risk/Reward Index
35
Czech Republic Risk/Reward Index
37
Rewards
37
Risks
37
Market Overview
38
Competitive Landscape
41
MGR
41
Home Improvement
42
Consumer Electronics
43
Clothing & Footwear
44
Online
45
Glossary
46
Methodology
54
Industry Forecast Methodology
54
Sources
57
Risk/Reward Index Methodology
57
Table: Retail Risk/Reward Index Indicators
58
Table: Weighting Of Indicators
60

The Czech Republic Retail Report has been researched at source and features BMI Research's independent assessment and forecasts for the retail sector. The report examines key drivers of retail sales growth and future prospects, including consumer spending and private sector investment.

BMI's Czech Republic Retail Report also examines the level of development and potential for growth of the retail sector, the commercial initiatives of major players, changing consumer demographics that influence demand and the regulatory environment. Key sub-sectors include mass grocery retail, autos, over-the-counter pharmaceuticals, computers and consumer electronics.

Key Benefits

  • Benchmark BMI's independent retail industry forecasts for Czech Republic to test other views - a key input for successful budgeting and strategic business planning in the Czech retail market.
  • Target business opportunities and risks in Czech Republic through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.

Coverage

BMI Industry View

Summary of BMI’s key forecasts and industry analysis, plus a discussion of major industry developments and a snapshot of key short-term demand-driving macroeconomic movements.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the retail sector and within the broader political, economic and business environment.

BMI Industry Forecasts

There are four separate 5-year forecast modules in the retail reports. These are:

  • Headline Retail Forecast: Total household spending (local currency and USDbn, % growth, % GDP, per capita, per household), spending by retail sector (food & non-alcoholic drink, alcoholic drink, clothing & footwear, housing & utilities, furnishings & home, health, transport, recreation, education, restaurants & hotels, personal care & insurance (local currency and USDbn, % growth, % GDP, % of total spending)
  • Retail Sector Forecast: Breakdown of Food, Non Alcoholic Drink, Alcohol, Tobacco, Clothing, Footwear, Household Goods, Furnishings, Appliances, Glass and Tablewear, Household Textiles, Consumer Electronics, Garden Toys and Pets, Home and Garden tools, Personal Care, Personal Effects Spending (USDbn, % Growth)
  • Household Income and Numbers Forecast: Number of Households (‘000, % growth); gross income per household and per capita; net income per household and per capita; tax and social contributions per capita; breakdown of household incomes – USD5000+, USD10,000+ USD50000+ (‘000, % of total); labour force, employment and unemployment (‘000, % change)
  • Demographic Forecast: Total population; Babies 0-12 months; Young Children 0-4yrs; Children 5-9yrs; Young Teens and Older Children 10-14yrs; Older Teens 15-19yrs; Adults 21yrs +; Young Adults 21-29yrs; Middle Aged 40-64yrs (‘000, % growth, male, female); Urban Population (‘000, % population); Rural Population (‘000, % population).

BMI’s Retail Risk Reward Index

BMI’s Risk Reward Indices provide investors looking for opportunities in the region with a clear country comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide indices of highest to lowest appeal to investors, with each position explained.

Market Overview

Provides a detailed country-specific analysis of the key trends and developments in the retail sector as a whole, as well as an assessment of the main drivers affecting the major retail segments including mass grocery retail, fashion, pharmacies, consumer electronics, home improvement and personal care. The market overview also considers the most effective store formats in a given country and the impact of these factors on the main international and domestic players’ development strategies.

Competitive Landscape

This provides a brief overview of the key players in each subsection of the retail sector including MGR, Fashion, Home Improvement, Consumer Electronics, Pharmacies, and Department Store chains.

Sources

The Retail Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.

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