Inflation may have come under control, the appetite of Czech consumers for discounts is insatiable. That, at least is most obvious conclusion from the finding by NIQ/GfK that the number of discount non-food chain stores has surged by 13% to reach 709. Hospodářské noviny writes that the most dominant retailer in the sector is Pepco, which entered the Czech market in 2012. It’s already overhauled its biggest rival KiK which had a five year headstart.
Newer entrants like Action and Tedi, both established in 2020, are aggressively expanding. By contrast, the German chain NKD has scaled back, closing five stores over the past year. But sector-wide, the growth goes on. For example, KiK and Pepco are among the top 10 largest retail tenants for CPI Property Group, though company reps told the newspaper that these brands have probably hit their ceiling. Instead, emerging retailers like Woolworth, Müller, and Worldbox are planning to enter the market by 2025.
As the popularity of discount shopping rises, brands such as Pepco, KiK, Tedi, and Action are increasingly moving into traditional shopping centers. This strategy offers landlords a chance to diversify their offerings and attract new customers. Meanwhile, retailers from traditional malls, like Lagardere’s Relay brand, are expanding into retail parks, where consumer traffic remains high despite rising rents and costs.
