Radoslav Škapa Retail in Czech Republic Retail in Czech Republic (overview) Retail market of consumer goods Dynamical development in the past 20 years Supplier’s dominance transformed into customer’s dominance Multinational supply companies established new, more efficient and modern distribution channels The market proportion of hypermarkets, supermarkets and discount stores is fully comparable to the Western European countries, following actual tendencies j0362655 Coop State Local Internatioal interkontakt pronto vit_potraviny albert billaLogo coop delvita_logo globus hypernova interspar kaufland lidl edeka makro meinl penny tesco2 carrefour plus_discount norma_logo Pramen: INCOMA Research The share of turnover per proprietor type THE MAIN SHOPPING PLACE FOR FOOD (development 1997-2007) Hypermarkets prove their generally dominant position: 38 % of Czech households name them as their main shopping place for the whole area of fast-turnover goods (i.e. the shop, where they spend the biggest part of their monthly expenses on food and basic non-food products). Discounts with 25% preferences again confirm slight but permanent growth of popularity among Czech consumers. Following the drop in previous years preferences of supermarkets tend to be rather stable (16%). The same applies to smaller groceterias, which have maintained their last year position with 14% preference level in the role of the main shopping place of Czech households. Small shops THE MAIN SHOPPING PLACE FOR FOOD (development 1997-2007) TOP50_2009_5 Cumulative number of hypermarkets Tendencies in Czech retail (2008) •Large-area shops (hypermarkets, discounts and supermarkets) as a whole have been permanently strengthening their market share but have been losing customers in sensitive goods categories. •Remain the main point for shopping of durable food products as packed food products, beverages (Consumers preferences are usually from 75% to 83% •Loosing in fresh food products (bread, pastry etc.) or specialized assortment of drugstore and cosmetics products (which are interesting from point of view of the margin!!!) Categories of durable food products follow the general preferences development: respondents mostly purchase them in hypermarkets (preferences 33-39%). Generally, big area format categories (hypermarket, supermarket, discount) have got high preferences – usually from 75% to 83%. However, in the area of fresh goods this trend is exactly the opposite. Generally, the distribution of fresh food products is characteristic with the reestablishment of preferences for smaller, specialized shops mostly at the expense of large area markets. The most characteristic are preferences of individual types of shops at the purchase of bread, pastry, fresh meat and sausages: approximately one half of respondents prefer non-self-service stores or smaller groceterias. Especially with meat and meat products the trend is clear. For example, over 50% customers buy fresh meat in smaller shops (groceterias, butcher’s) and this trend has been permanently growing ever since 2003. The similar situation is with the drugstore categories, where there is an obvious growth of preferences for specialized drugstores (16 % - 39 %). This year inquiry indicated the growth of preferences of specialized shops, both with cosmetics and personal hygiene and with washing and cleaning detergents. TREND: POKLES ROLE MENŠÍCH PRODEJEN plocha hypermarketů 2006: 1.000.000 m2 qpodíl malých prodejen rychle klesá qrostou velké širokosortimentní prodejny Pramen: INCOMA Research / SHOPPING MONITOR TREND: RŮST ROLE MENŠÍCH PRODEJEN! (hlavní nákupní místo čerstvého masa) qpozice formátů se čím dál víc liší podle nakupovaného sortimentu „category killer“ roku 2010? Pramen: INCOMA Research / SUPERMARKET&DISKONT TREND: RŮST ROLE MENŠÍCH PRODEJEN! (parfémy / deodoranty) Pramen: INCOMA Research / Drogerie TREND: RŮST ROLE MENŠÍCH PRODEJEN! (dekorativní kosmetika) Pramen: INCOMA Research / Drogerie Albert2a lidl tesco pramen_cz Market share and the size of municipality Floor space of hypermarkets in square meters per 1000 inhabitants The differences in per capita purchasing power in the Czech regions 1022cz_2 Source: Purchasing power in the Czech districts and municipalities 2005 (GfK + INCOMA) 12_07_GfK_Purchasing_Power_Europe_2007 Purchasing Power – What is it? Purchasing power provides the answer to one of the most important questions in Geomarketing: Where is how much money available? The basic principle is simple: the more inhabitants a region has and the higher their per capita purchasing power is, the more attractive this region is for marketing. In other words: High purchasing power = Great sales potential. The purchasing power of a household is the sum of all incomes in a household which the inhabitants of the household have at their disposal for their entire consumer spending –i.e. after dedaction of taxes, rents, etc. For households in Germany, this comprises the net wages/salaries of all earners plus child benefit and other social security benefits, such as unemployment assistance and the like. Cities with the highest shopping center space per 1,000 inhabitants Western Europe * Eastern Europe Leonding (Austria) 1,558 m2 Ljubljana (Slovenia) 1,667 m2 Sankt Pölten (Austria) 1,444 m2 Karlovy Vary (Czech Republic ) 1,343 m2 Wiener Neustadt (Austria) 1,406 m2 Hradec Kralove (Czech Republic) 1,040 m2 Stockholm (Sweden) 1,165 m2 Plzen (Czech Republic) 922 m2 Geneva (Switzerland) 891 m2 Olomouc (Czech Republic) 899 m2 * (Germany and France are not included in the statistics. Germany is available separately as “GfK GeoMarketing Retail Location Guide Germany“. The guide for France is currently under way. All retail location studies are updated annually.) Retail TOP10: process of concentration (turnover on Czech market) 7% 70% Pramen: INCOMA Research TOP50_2009_4 TOP10 in Czech Retail (estimations) TOP10 marketshare 64% The main shopping place for food- 2006 Pramen: Shopping Monitor 2006 (INCOMA Research + GfK Praha) SHOPPING AS A WAY OF SPENDING TIME Source: SHOPPING MALL 2004 (INCOMA + GfK) Selling time restriction Shops open during red-letter day? Non-stop Open untill 22:00? GfK Praha, 2004 J J L L K K WHAT IS IMPORTANT FOR YOU WHEN BUYING FOOD? A new contradictious tendency? •Alternative trade channels •In accordance with PriceWaterhouse Coopers, more than 50% of food will be traded outside classical retail. (That is, in independent convenience stores, stalls, in marketplace or multiplex.) •Time-saving •People-centered not technology-centered •Why ATC? •Aging population •Single parent families, singles, one child f. •No time for shopping •ATC in Czech rep. •Turnover 5-10 mdl. CZK per year •Rate of grow: 10 – 20% A new contradictious tendency? THE PER CAPITA PURCHASING PARITY LEVEL IN CENTRAL EUROPE RELATED TO EU 15 2005100302 PM_Chart3_Incoma_27022006(2) Bez názvu2 ÜUnpretentious stoic ÜLoyal housewife ÜMobile pragmatic ÜCautious Conservatie ÜSaver ÜAmbitious ÜInfluenceable Ü60 Ü80 Ü100 Ü120 Ü140 Ü50 Ü60 Ü70 Ü80 Ü90 Ü100 Ü110 Ü120 Ü130 Prefer smaller stores Prefer hypermarkets Buy necessary thing only Buy avoidable things as well Shopping behaviour A CO TO DĚLÁ SE ZÁKAZNÍKY? -> positioning řetězců a segmentace nákupního chování albert billaLogo coop delvita_logo globus hypernova interspar kaufland lidl penny tesco2 plus_discount cena ŠETŘIVÝ KOMUNIKATIVNÍ HOSPODYNĚ MOBILNÍ PRAGMATIK NÁROČNÝ VELKORYSÝ POHODLNÝ OPORTUNISTA NENÁROČNÝ KONZERVATIVEC EKONOM qnakupující tak trochu bloudí… q…a vnímají více rozdíly mezi formáty než mezi řetězci Pramen: INCOMA Research / Shopper Typology Trademarks of retail chains economical (best price) Clever (Billa) Euro Shopper (Albert, Hypernova) Mince (J. Meinl) Tesco výhodný nákup (Tesco) 1 (Carrefour) 365 (Delvita) standard quality for better price Albert (Albert) Carrefour (Carrefour) Delvita (Delvita) Hypernova (Hypernova) Spar (Interspar) Tesco (Tesco) special (selected range of products) Best farm (Kaufland) Selský dvůr (Hypernova) Chef Menü (Billa) Extra kvalita (Delvita) Quality first (Billa) Julius Meinl (J. Meinl)