Ahold and Tesco battle in Czech Republic

Two of Europe’s biggest retailers, Ahold and Tesco, are battling to be the market leader in the Czech Republic. Each retailer currently holds about 20% of the market, according to published estimates.

Tesco recently made a big gain with the acquisition of 128 convenience stores, including 47 stores of the Koruna banner and 81 stores of the Zabka banner. The stores will operate under the Tesco Express banner.

Ahold isn’t planning any acquisitions but still wants to be the biggest retailer in the country. “Market leadership is our goal,” says Jan van Dam, CEO of the Ahold’s Czech subsidiary. “I do not look at acquisitions in neighbouring countries. There is still plenty to do here and there is great growth potential. We can be leaders here with our current network and possibly a number of stores at new locations.”

Ahold has 225 supermarkets and 56 hypermarkets in the country. The retailer has taken several steps to improve profitability, including closing stores and expanding private label.