29 June 2005GfK GroupCzech Retail & Shopping Centre Development 1 INCOMA Research LATEST...

29 June 2005GfK Group Czech Retail & Shopping Centre Development

1

INCOMA ResearchLATEST DEVELOPMENTS OF THE CZECH

RETAIL, EXPANSION OF SHOPPING CENTRES

Tomáš Drtina, INCOMA Research


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INCOMA Research

INCOMA Research

established in February 1991; since May 2000 member of the international group of GfK

member of ESOMAR, SIMAR, EAERCD, ICSC

25 full-time employeees, who carry out about two hundred research and consultancy projects a year, most of them in the segment of retail & real estate research

combines local and international know-how

operates mainly in Czechia and Slovakia, but activities also in other countries of CEE region (in cooperation with the partner GfK companies)

INCOMA is market leader in the field of retail & real estate research and consultancy

can take benefit of own wide consumer, retail and real estate database

conducts regularly generic multi-client surveys, dealing mainly with retail, but also e.g. with leisure or residential market segments

can guarantee unbiased and objective expert view

has established long-term partner relationships with its clients (mainly retailers, developers, suppliers)


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INCOMA Research

market concentration speed slowing down, TOP 10 retailers control 50% of the FMCG already

competition getting sharper, not all big retailers recorded a good year in 2004

hypermarket has become the most preferred retail format, however its growth has stopped recently

market more global, more international

discounters on their way up – they managed the highest growth in 2004, thanks to Lidl

even higher pressure on communication of low prices by most retailers

changes in shopping behaviour, shoppers becoming more demanding

growing differentiation among shoppers

MAIN TRENDS IN CZECH RETAIL


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INCOMA Research

TOP50 CHAINS‘ RETAIL SALES STRUCTURE

44%

17%

15%

4%

8%

4%

2%

2%

4% hypermarkets

supermarkets

discounts

small food stores

do-it-yourself

consumer electronics

chemists

furniture

other


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INCOMA Research

DEVELOPMENT OF NUMBER OF HYPERMARKETS IN THE CZECH REPUBLIC

27

25

51

82

106

127

145

160

0

20

40

60

80

100

120

140

160

180

1.1.1997

1.1.1998

1.1.1999

1.1.2000

1.1.2001

1.1.2002

1.1.2003

1.1.2004

1.1.2005

num

ber

of

sto

res

Source: Database INCOMA Research*(years 2003 - 2005 including Hypernova stores with less than 2500 m2 of SFS)

in 2004, 15 hypermarkets were opened, this year further 10-12 are planned (+ small Tesco)


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INCOMA Research

DEVELOPMENT OF HYPERMARKET SELLING SPACE IN THE CZECH REPUBLIC

0 10 40

137

260

450

547

635

727

816

0

100

200

300

400

500

600

700

800

900

1.1.1996 1.1.1997 1.1.1998 1.1.1999 1.1.2000 1.1.2001 1.1.2002 1.1.2003 1.1.2004 1.1.2005

sellin

g s

pace

(th

s. m

2)

Source: Database INCOMA Research*(years 2003 - 2005 including Hypernova stores with less than 2500 m2 of SFS)

at the end of 2006, the level of 100 m2 per 1000 inh. can be achieved


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INCOMA Research

TOP10 RETAILERS IN CZECHIA (revenues in CZK billion)

the fastest grow was by Lidl, further by Makro, Ahold, Tesco, Kaufland

Ranking Group / Company Chain (no. of stores)turnover

2003turnover

2004change

2004/20031. Makro Cash&Carry ČR Makro (11) 35.7 38.2 * 2.52. Ahold Czech Republic Albert (184), Hypernova (47) 32.5 * 34.6 * 2.13. Schwarz ČR 27.0 * 34.5 * 7.5

Kaufland Kaufland (57) 25.0 * 26.5 * 1.5Lidl ČR Lidl (96) 2.0 * 8.0 * 6.0

4. REWE ČR 22.3 * 23.3 * 1.0Billa Billa (71) 8.5 * 8.5 * 0.0Penny Market Penny Market (151) 13.8 14.8 1.0

5. Tesco Stores ČRTesco hypermarket (19), Tesco OD (6) 19.0 * 21.0 * 2.0

6. Globus ČRGlobus (10), Baumarkt Globus (2) 18.2 19.0 0.8

7. Tengelmann ČR 17.7 * 18.9 * 1.2Plus - Discount Plus (113) 12.1 13.0 * 0.9OBI - systémová centrála OBI (17) 5.6 * 5.9 * 0.3

8. DelvitaDelvita (76), Delvita City (3), Proxy (9), Sama (9) 10.0 * 10.0 * 0.0

9. Carrefour ČR Carrefour (10) 10.0 * 11.0 * 1.010. Spar ČR (Spar Česká obchodní, Spar Šumava) Interspar (17) 9.0 * 11.0 * 2.0

1.-10. TOTAL 203.4 * 221.5 * 20.1* = INCOMA Research estimateSource: INCOMA Research


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INCOMA Research

PURCHASING POWER IN CEE STILL LOW

49 47 45 44 4236

30 29 27 26 24 26

91

76

5259

68

101

113

74

100

79

66

A EU-15

D SP CP GR SLO P CZ H SK EST LT PL HR LV RUS RO BG TR BA MAC UA

Germany = 100


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INCOMA Research

HYPERMARKET SELLING SPACE IN CZECH DISTRICTS – PER CAPITA (1.1.2005)


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INCOMA Research

WHAT IS IMPORTANT FOR YOU WHEN BUYING FOOD?

(average mark 1=very important, 5=totally unimportant)

85 8066 61 63 69

60 57 49 53 5739 40 37 32 24 22 29

17

12 1526 30 27 21

29 3036 32 24

27 2520

1923 23 14

14

01020304050

60708090

100

fres

hn

ess

and

qu

alit

y of

goo

ds

pri

ce le

vel

asso

rtm

ent

ran

ge

qu

ick

shop

pin

g

orie

nta

tion

in t

he

stor

e

visi

ble

pri

ce t

ags

clea

nes

s of

th

e st

ore

and

its

surr

oun

din

gs

nic

e an

d w

illin

g s

taff

shop

pin

g e

nvi

ron

men

t

tim

e ac

cess

ibili

ty o

f st

ore

open

ing

hou

rs

pre

sen

ce o

f C

zech

pro

du

cts

trad

itio

n, h

abit

cap

acit

y of

par

kin

g lo

t

acce

ssib

ility

by

pu

blic

tra

nsp

ort

pre

sen

ce o

f b

ran

ded

pro

du

cts

cust

omer

ser

vice

s

pos

sib

ility

of

cash

less

pay

men

t

loya

lty

sch

emes

in %

rather important

very important

1,191,27 1,44 1,50 1,48

1,681,59 1,691,71

2,542,10 2,16

2,712,652,77

3,232,99

1,42 1,54


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INCOMA Research

IMPORTANCE OF PARTICULAR FACTORS FOR THE CHOICE OF SHOPPING PLACE - FASHION

1,4

5

1,5

4

1,5

7

2,0

7

2,1

6

2,2

4

2,2

7

2,3

1

2,4

2

2,4

7

2,8

1

2,8

3

2,9

9

3,0

1

3,1

3

1

1,5

2

2,5

3

3,5

ple

asa

nt &

qualified p

ers

onnel

quality

goods

wid

e c

hoic

e o

f goods

seaso

nal dis

counts

low

pri

ces

indiv

idual st

yle

trendy g

oods

more

sto

res

in o

ne p

lace

date

less

fash

ion

pro

xim

ity o

f th

e s

tore

furt

her

ass

ort

ments

in the s

tore

non-c

ash

paym

ent

bra

nded fash

ion

part

of a s

hoppin

g c

entr

e

larg

e s

izes

TOTALsmall customersmedium customersbig customers

average importance, where 1 - very important, 5 - unimportant factor


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INCOMA Research

DO YOU USE A CAR FOR SHOPPING ?

(in % of respondents, by household monthly income and by size of place of residence)

32

1018

32 3039

43 4145

35

2230 28

28

7

22

27 35

3231

41 30

26

25

29 31

10 9

11

1311

5

4

11

12

10 10

8

7

5 67

66

22

74

40

2115

11 9 516

22 24 23

6

8

710

5

11

15

4

24

0%

20%

40%

60%

80%

100%

TO

TA

L

HO

USEH

OLD

INC

OM

E

up t

o 8

000 C

ZK

8001 -

15 0

00 C

ZK

15 0

01 -

20 0

00 C

ZK

20 0

01 -

25 0

00 C

ZK

25 0

01 -

30 0

00 C

ZK

30 0

01 -

40 0

00 C

ZK

40 0

01 C

ZK a

nd

more

SIZ

E O

F R

ESID

EN

CE

PLA

CE

up t

o 999 inhabitant

1000-4

999 inhab.

5000-1

9999 inhab.

20000-9

9999 inhab.

100000 inhab.

no answer

no, we have no car

no, I see no need

exceptionally

yes, sometimes, forbigger shopping

yes, very often

three fifths of households use a car for shopping

regularly (esp. the richer ones)


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INCOMA Research

IN WHAT TYPE OF STORE DO YOU REALIZE MOST OF YOUR EXPENDITURES ON FOOD ?

1620

3037 35

2426

23

29

21

1920

9

13

15

1718

19 22

49

41

32

2322

1820

13 12 108

53

29

4

26

18

20

55

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

XI/ 97 XI/ 98 XI/ 99 XI/ 00 XI/ 01 XI/ 02 XI/ 03 XI/ 04

other

market, stall

specialised store

serviced foodstore

superette

discount store

supermarket

hypermarket

preferences for hypermarkets do not grow anymore


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INCOMA Research

IN WHAT TYPE OF STORE DO YOU REALIZE MOST OF YOUR EXPENDITURES ON FOOD ?

THE MAIN SHOPPING PLACE FOR FOOD IN THE CEE COUNTRIES

3529

23

8 105

25

7

20

814

18

29

12

34

54

74

22

2027 56

2 2

20

35

9 2

92

35

26

43

9

6

8

2

2

25

13

2

14

6

24

28

2

11

32

2 4

19

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%Cze

chia

Hungary

Pola

nd

Rom

ania

Russ

ia /

Mosc

ow

Russ

ia /

St.

Pete

rsburg

Serb

ia a

nd M

onte

negro

Slo

vakia

Ukra

ine /

Kie

v

other

specialised food shops

counter food shop

superette

discount store

supermarket

hypermarket


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INCOMA Research

EXAMPLE FORMAT PREFERENCES BY SHOPPER TYPES (FMCG):

CZECHIA

2%

8%

14%

18%

22%

16%

4%

8%

9%

25%

15%

15%

2%

6%

11%

10%

21%

13%

13%

13%

18%

12%

18%

16%

20%

8%

16%

9%

6%

9%

12%

21%

15%

13%

8%

13%

15%

11%

8%

4%

6%

33%

26%

10%

5%

12%

2% 11%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

counter shop

small self-service store

supermarket

discount

hypermarket

TOTAL

share of types in the customers of formats

economist

mobile pragmatic

demanding

generous

communicativehousekeeper

thrifty

comfortableopportunist

undemandingconservative


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INCOMA Research

SHOPPING CENTRES - LATEST MARKET DEVELOPMENTS

Expansion (tens of pipeline projects)

Gastronomy & Leisure to be integrated in majority of the new projects – „RETAILTAINMENT“, multi-function complexes

Fierce competition (winners and losers)

Changes in ownership and management

Not just „out-of-town“

„Hypermarketmania“ still continuing, however bigger accent put on „quality“ issues recently

New Concepts (traditional, specialized, malls, retail parks, factory outlet..)

Big Big Big


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INCOMA Research

SHOPPING AS A WAY OF SPENDING TIME

Source: SHOPPING MALL 2004 (INCOMA + GfK)

HOW MUCH TIME DO YOU USUALLY SPEND WHEN YOU LAST IN YOUR SHOPPING CENTER?

2% 5% 19%

52%

22%

5 hours and more

3-4 hours

2-3 hours

1-2 hours

less than one hour


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INCOMA Research

Within the framework of census of 177 largest shopping centres in Czechia were indentified ca.:

3560 shops

409 gastronomy outlets

50 leisure facilities

299 service outlets

NOT JUST RETAIL…


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INCOMA Research

ROLE OF A HYPERMARKET IN A SHOPPING CENTRE

WHY DO YOU VISIT "YOUR" SHOPPING CENTRE?

both reasons - about the same

37%

mostly because of shopping in shopping

mall stores12%

mostly because of shopping in hypermarket

51%

Half households visit their centre mainly

because of shopping in the hypermarket.

Shopping mall is the main visit target for approximately one eighth of shoppers.

Generally about one half of households visit shopping mall.


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INCOMA Research

4.16. Assortment structure of shopping malls situated within the shopping centres - 1.1.2005

(excluding hypermarkets and do-it-yourself stores, in % of total selling space)

33,0

15,113,3

11,2

9,4

3,22,7

2,1

1,8

1,4

1,4

1,1

0,9

0,9

0,9

0,7

0,5

0,5 fashion, clothes

consumer electronics, PC

sports, toys

shoes, leather goods

furniture, indoor textile

jewellery, gifts

chemist's, cosmetics

books, music shop

food

pharmacy

flowers

tobacco, newspapers

pet shop

optitian's

household equipments

auto-moto

photo

other assortments

SHARE ON RETAIL SPACE IN SHOPPING CENTRES


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INCOMA Research

FASHION SECTOR EXPANDING(total number of stores in Czech shopping centres by categories)

0

100

200

300

400

500

600

700

800

900

1 000

1.1.2005 1.1.2004


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INCOMA Research

NEW/FUTURE SHOPPING CENTRE PROJECTS - BOOM CONTINUES

Carrefour Eden

Liberec

Novo Plaza

Vaňkovka

Carrefour Královo Pole

Galerie Butovice

Plaza Centrum Plzeň

IGY České Budějovice

Palladium

Centrum Chodov

Karlovy Vary

Arkády PankrácPrague Nord

Plaza Centrum Brno


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INCOMA Research

Thank you for your attention! drtina@ incoma.cz www.incoma.cz

29 June 2005GfK GroupCzech Retail & Shopping Centre Development 1 INCOMA Research LATEST...

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