Lidl, Ahold, Makro, Tesco and REWE lead in Czech market

The ten largest retail chains strengthened their position on the Czech market last year, holding already 63% of the fast-moving goods market. At the same time, thanks to mergers of large retail chains, the share of Czech trading companies rose, the survey shows.

After the approval of the takeover of the Delvita chain by the firm Billa, a group of the five strongest retail chains was formed. They are Schwarz (Lidl, Kaufland), Ahold (Hypernova, Albert), Makro, Tesco and REWE Group (Billa and Penny Market). Each of them has sales higher than Kc30bn (EUR1.06 billion). The turnover of the top ten retail chains was growing much faster in the past years than the turnover of the remaining around 40 retailers.

Four large retail chains decided to leave the Czech Republic. Delvita will hand over its 97 supermarkets to Billa in June. Julius Meinl left the country in 2005 and France's Carrefour and Germany's Edeka followed suit last year. The chain of 27 Edeka supermarkets and eleven Carrefour hypermarkets was sold to Tesco Stores CR. Former Julius Meinl outlets now belong to the firm Ahold.

This is one of the reasons why the position of Czech retail companies got stronger. Their share in the sales of the 50 largest retailers rose by one percentage point to 17% last year. Cooperatives had a 2% share and the share of international retailers stood at 80%. It is believed that more retail chains will leave the Czech Republic and that in particular smaller outlets will expand.

For the first time, German group Schwarz ranked first in the chart of the largest retailers last year. In the Czech Republic, it runs a chain of Kaufland Hypermarkets and Lidl discount outlets. In 2005, Schwarz ranked second and Makro Cash & Carry with Kc38.3bn (EUR1.35 billion) sales was first.

(Source: Prague Monitor)