Business Monitor International


Czech Republic Retail Report

Published 10 December 2014

  • 66 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: Both the economy and the retail sector in the Czech Republic have been struggling for the past three years, marked by a prolonged period of decline. The retail sector will start to rebound in 2015, growing throughout the whole forecast period, and accelerating the most in 2016 when we predict total household spending to expand by 9.7%. The Czech Republic is characterised by arguably the most mature retail sector in the CEE region and high dependency on eurozone countries. BMI expects recovery in Western Europe, rising household income and consumer confidence to propel growth of the country's retail sector in 2015-2018.

Unlike most of the countries in the CEE region, the Czech Republic did not demonstrate stable growth figures over the past three years. Dependence and geographical proximity to the Western European markets - which experienced various euro-related problems - subdued the country's economic growth between 2012 and 2014. GDP shrank by 9.1% during the period, as a result of declining foreign direct investment, fixed capital formation and private consumption. However, BMI expects the Czech economy to return to growth between 2015 and 2018, increasing 5.3-10.2% annually throughout the forecast period. This will positively affect total household spending and prospects in the retail sector. Several medium-sized shopping centres have recently opened in Prague, as well as in smaller towns, and more openings are expected in 2015. The retail sector started to show signs of recovery in 2014 thanks to strong car sales, with the country's own car brand Škoda posting record results.

However, the constantly exacerbating situation in Ukraine and resulting sanctions have put the Czech Republic in a difficult position. The country has been affected by the Kremlin's response to EU sanctions, which took effect in summer 2014. The Czech industry and trade minister projected that the sanction war could result in losses totalling USD0.4bn - a significant...

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 2011-2018)
15
Table: Retail Sector Spending, % Of Total (Czech Republic 2011-2018)
17
Table: Retail Sector Spending, % of GDP (Czech Republic 2011-2018)
18
Table: Headline Retail Sector Spending (Czech Republic 2011-2018)
19
Retail Subsectors Forecast
21
Food Drink & Tobacco
21
Table: Food, Drink & Tobacco Spending (Czech Republic 2011-2018)
22
Clothing & Footwear
23
Table: Clothing & Footwear Spending (Czech Republic 2011-2018)
24
Household Goods
25
Table: Household Goods Spending (Czech Republic 2011-2018)
26
Personal Care
27
Table: Personal Care Spending (Czech Republic 2011-2018)
28
Household Numbers and Income Forecast
29
Table: Household Income Data (Czech Republic 2011-2018)
30
Table: Labour Market Data (Czech Republic 2011-2018)
32
Retail Demographic Forecast
33
Table: Total Population (Czech Republic 2011-2018)
34
Table: Population: Babies (Czech Republic 2011-2018)
35
Table: Population: Young Children (Czech Republic 2011-2018)
35
Table: Population: Children (Czech Republic 2011-2018)
35
Table: Population: Young Teens and Older Children (Czech Republic 2011-2018)
36
Table: Population: Young People (Czech Republic 2011-2018)
36
Table: Population: Older Teenagers (Czech Republic 2011-2018)
36
Table: Population: 21yrs + (Czech Republic 2011-2018)
37
Table: Population: Young Adults (Czech Republic 2011-2018)
37
Table: Population: Middle Aged (Czech Republic 2011-2018)
37
Table: Population: Urban (Czech Republic 2011-2018)
38
Macroeconomic Forecasts
39
Economic Analysis
39
Table: Economic Activity (Czech Republic 2009-2018)
41
Industry Risk Reward Ratings
42
Central And Eastern Europe Risk/Reward Ratings
42
Table: Europe Risk/Reward Ratings
42
Industry Risk/Reward Ratings
43
Rewards
43
Risks
43
Market Overview
44
Store Formats
45
Retail Subsectors
45
Tourism
47
Competitive Landscape
48
MGR
48
Home Improvement
49
Consumer Electronics
50
Pharmacies
51
Glossary
52
Methodology
60
Industry Forecast Methodology
60
Sources
63
Risk/Reward Rating Methodology
63
Table: Retail Risk/Reward Ratings Indicators
65
Table: Weighting Of Indicators
66

The Czech Republic Retail Report has been researched at source and features Business Monitor International (BMI)'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, (US$bn and local currency, % growth, % GDP, per capita, per household); Spending by Retail Sector for: food and non-alcoholic drink, alcoholic drink, clothing and footwear, housing and utilities, furnishings and home, health, transport, recreation, education, transport, restaurants and hotels, personal care and insurance (US$bn and local currency, % growth, % GDP, % of total spending)

Retail Sector Forecast: Breakdown of Food, Non Alcoholic Drink, Alcohol, Tobacco, Clothing, Footwear, Household Goods, Furnishings, Appliances, Glass and Tableware, Household Textiles, Consumer Electronics, Garden Toys and Pets, Home and Garden tools, Personal Care, Personal Effects Spending (US$bn, % 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 – US$5000+, US$10,000+ US$50000+ (‘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).

Industry Risk Reward Rankings

BMI’s Retail Industry Risk Reward Rankings provide a country-comparative Risk Reward Rankings index aimed at investors in the regional retail market.

The rankings methodology makes sophisticated use of over 40 industry, economic and demographic data points.

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.

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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