Declining sales by discount stores in the Czech Republic

In the first qarter of 2010, value sales in food retail decreased by 3.2 percent in the Czech Republic (in Hungary by 3.5 percent), while volume sales diminished by 2.8 percent (in Hungary by 3.2 percent). Average prices were 0.4 percent lower in the Czech Republic and 0.3 percent lower in Hungary. There were 259 hypermarkets in the Czech Republic (Hungary: 152) at the end of last year and Nielsen counted 613 discount stores (Hungary: 431). Supermarkets managed to increase sales by 4 percent last year. Sales by hypermarkets remained stable, but discount stores realised 6 percent less than a year earlier. As for retail chains, German group Schwarz was the number one: their Kaufland (hypermarket chain with discounter price policy) and Lidl stores realised a CZK 60 billion turnover last year. Number two was another German group, Rewe with their Billa and Penny Market units. Tesco was in the third position, with 64 hypermarkets, 43 supermarkets and 22 Tesco Express units. Among the food categories measured by Nielsen, wine and rum were the most successful, together with tea and coffee. The market share of private label products was stable around 15 percent, in terms of value.