The Czech electronics retailer Okay is anything but ok. That’s why the brand along with its 100 stores and 1,500 employees is on sale in a deal Hospodářské noviny says is being led by KPMG. The paper reports that banks are squeezing its line of credit, reducing its ability to stock goods, and that it likely suffered a double-digit decline in sales during 2023. Turnover fell CZK 337 million in 2021 to CZK 4.8 billion, while in 2022 Okay turned in a loss of CZK 67 million.
It’s hardly surprising. Only two Czech electronics retailers (Datart and Alza) are actually thriving: Datart and Alza. According to HN
, neither are likely to be tempted to buy Okay. It quotes the editor in chief of Sell magazine Lubor Jarkovský as saying that the only likely candidate is Fast Group, the consumer retail group led by PPF and EC Investments (owned by Daniel Křetínský a Patrik Tkáč). “They’re the only market player it would make sense for to buy Okay, mainly because of their stores.”
“The market is changing: a duopoly is being created and Okay is one of the companies that’s being hurt by this,” says Jarkovský. “The strong are strengthening and weak are getting weaker: that’s the current trend in electronics.”
“The Czech retail scene is heading for consolidation,” says Kamil Vacek (TCCM). “There are two hegemons controlling the situation because they’re able to use their market strength and the others are coming under enormous pressure.”