Czech Republic Retail Report

Published 17 June 2015

  • 60 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
 
$1,295.00
Czech Republic Retail Report

BMI View: The Czech Republic has arguably the most mature retail sector in Central and Eastern Europe. Competitiveness across the sub-sectors will negatively impact opportunities for the retailers. However, the country will be exiting a long period of recession and the income of Czech households will be growing robustly until 2019 , stimulating the sales in the sector.

The Czech economy posted very strong growth figures in Q1 2015. Gross domestic product grew by 3.9% year-on-year (y-o-y) and enjoyed the fastest expansion in the European Union. Reliance on exports makes the Czech Republic susceptible to regional economic shifts, which partly determined the path of country's economic growth since 2008. Currency fluctuations have benefitted the country's manufacturers since the middle of last year - koruna, the national currency, depreciated sharply against both euro and dollar boosting price competitiveness of Czech products, particularly, automobiles and food. The Czech central bank has passed weak koruna policies and the country's government has relaxed its budget expectations for 2015 allowing stimulus for producers and converting the benefits to the consumers as well.

Economic recovery and growth promise optimistic growth prospects for the forecast period. Country's nominal GDP is projected to grow by 3.1% this year, at one of the highest rates in the EU. Strong economic expansion will propel the rise of household income which is anticipated to inflate by almost 37% by the end of the forecast period. Having in mind Czech Republic's high level of development, the figure is very high and suggests that the country will be further converging to Western European standards of living. While the unusually positive projection can be partly attributed to the Czech economy regaining the ground lost during the financial crisis and several years in the post-crisis period, low employment and rise in wages will further boost household income and spending.

Traditionally a...

Table of Contents

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)
15
Table: Retail Sector Spending, % Of Total (Czech Republic 2012-2019)
16
Table: Retail Sector Spending, % of GDP (Czech Republic 2012-2019)
17
Table: Headline Retail Sector Spending (Czech Republic 2012-2019)
18
Retail Subsectors Forecast
20
Food, Drink & Tobacco
20
Table: Food, Drink & Tobacco Spending (Czech Republic 2012-2019)
22
Clothing & Footwear
23
Table: Clothing & Footwear Spending (Czech Republic 2012-2019)
23
Household Goods
24
Table: Household Goods Spending (Czech Republic 2012-2019)
25
Personal Care
25
Table: Personal Care Spending (Czech Republic 2012-2019)
26
Household Numbers and Income Forecast
27
Table: Household Income Data (Czech Republic 2012-2019)
28
Table: Labour Market Data (Czech Republic 2012-2019)
30
Retail Demographic Forecast
31
Table: Total Population (Czech Republic 2012-2019)
32
Table: Population: Babies (Czech Republic 2012-2019)
33
Table: Population: Young Children (Czech Republic 2012-2019)
33
Table: Population: Children (Czech Republic 2012-2019)
33
Table: Population: Young Teens and Older Children (Czech Republic 2012-2019)
34
Table: Population: Young People (Czech Republic 2012-2019)
34
Table: Population: Older Teenagers (Czech Republic 2012-2019)
34
Table: Population: 21yrs + (Czech Republic 2012-2019)
35
Table: Population: Young Adults (Czech Republic 2012-2019)
35
Table: Population: Middle Aged (Czech Republic 2012-2019)
35
Table: Population: Urban (Czech Republic 2012-2019)
36
Macroeconomic Forecasts
37
Economic Analysis
37
Industry Risk Reward Index
42
Central And Eastern Europe Risk/Reward Index
42
Table: Central And Eastern Europe - Retail Risk/Reward Index
42
Czech Republic Risk/Reward Index
44
Rewards
44
Risks
44
Market Overview
45
Store Formats
46
Retail Subsectors
46
Tourism
48
Competitive Landscape
49
MGR
49
Home Improvement
50
Consumer Electronics
51
Pharmacies
51
Glossary
52
Methodology
60
Industry Forecast Methodology
60
Sources
63
Risk/Reward Index Methodology
63
Table: Retail Risk/Reward Index Indicators
64
Table: Weighting Of Indicators
66

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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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc