Tesco's Czech Division Sees Like-For-Like Sales Decline
News: Tesco Stores CR, the Czech subsidiary of UK-based retailer Tesco, registered a 6.9% year-on-year (y-o-y) decline in its like-for-like sales for H113/14 ended August 24. The company's like-for-like sales dropped 5% y-o-y in Q213, an improvement on the 9% drop in Q113. The decline comes at a time when Tesco Stores CR has been expanding its online retail business.
BMI View: The Czech Republic is one of the most mature and competitive retail markets in the region. Compared with other Central and Eastern Europe countries, concentration in the retail sector is quite high, with the top 10 companies - all of them foreign operators - accounting for around 50% of sales. The growth of modern mass grocery retailers at the expense of small independent grocery stores can be expected to continue over the next few years. The market is more global and international than ever before, and competition is becoming more refined. Hypermarkets are now the leading format in value and growth, with around 36% of all Czech households frequently shopping at one of the more than 160 large-format stores.