The development of the Czech retailing sector
Author:Ing. Jitka Odehnalova, Prof. Ing. Dana Zadrazilova, CSc, Ing. Premysl Prusa
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Keywords:Macroeconomic Situation, Retail Network
Food Prevailing Chains, Non Food Chains
Customers´ Behavior
Abstract:
More than one year ago the Czech Republic joined the European Union. After a period of hectic preparation and
investment, many companies made the best of an easier access to new markets. Other firms, on the contrary, passed a year of
a deep disillusionment discovering that the world is not waiting for them and they have to fight hard for a position on the
markets. Each further day the often proved truth is more and more significant, that the production is only one part of a
“consumption process” and it is easier to produce than to sell goods, while competition among retailers is becoming stronger
and stronger.
A characteristic feature of the Czech retail industries is the phenomenon of bargain-basement pricing at present.
Growing sense of nervousness among suppliers and also slower growth – in many cases, stagnation – of suppliers’ turnover is
caused by an uncompromising attempt to sell at the lowest possible price combined with on-going consolidation and
competition between individual chains and retail formats. The most popular type of outlet is represented by hypermarkets.
Supermarkets and other types of outlets are on the contrary going through the period in the doldrums, some of them are
loosing market share. All of them are now facing the main question-how to attract customers.