Czech online grocers look east and west beyond their home market

Rohlik was focused on turning a profit in Europe’s biggest economy after postponing plans to expand in Italy, Spain and other markets as inflation and the Ukraine war cloud the economic outlook.

Last year, the privately-held company drove revenue 33% higher to 574 million euros. Cupr said it had generated profit in its home market but posted an overall operating loss as it pursued expansion.

He said succeeding in Germany over the next two years would help raise capital for a further push by the grocer, which is active in Hungary and Austria and has a small pilot programme in Italy. It has also laid the groundwork to open up in Spain.

Kosik is looking eastward, entering the Slovak market and expanding in Bulgaria.

CEO Ivan Utesil said the company would also seek to cut into Czech market share by capitalising on its tie-in with German wholesaler Metro in some regional areas.

Metro, in which Kretinsky also holds a major share, announced in January that it had acquired a 25% stake in Kosik, aiming to become a stronger partner and improve the online grocer’s sourcing capabilities.

“The infrastructure is a great enabler for us to expand,” Utesil told Reuters. “This model (of using Metro stores in regions) enables fast rollout. It is not capital-heavy.”

Germany is not yet on Kosik’s radar, he added, although it will eventually turn its attention to other central and eastern European countries.

Reuters