Central European Business Review 2012, 1(3):22-27 | DOI: 10.18267/j.cebr.27

Retail Market Structure Development in Central Europe

Martin Machek

Martin Machek, Department of Marketing, Faculty of Business Administration, University of Economics, Prague, Winston Churchill Sq. 4, 130 67, Prague 3, Czech Republic, martin.machek@vse.cz

This article analyzes the trends and development of the retailing sector in Central Europe, namely in the Czech Republic, Hungary, Poland and Slovakia. These markets serve about 63 million inhabitants. The retail industry in Central Europe has changed dramatically in the last two decades, and has become a model for successful transformation of emerging markets. The retail market is highly concentrated and dominated by Western European retail chains. International retail chains are using all formats of modern distribution. This article is focusing on the development of hypermarkets, supermarkets and discount stores. Due to international retail chains, Central European countries benefit from a dense network of modern shopping places; the intense competition of highly productive retailers contributes to a lower inflation rate because of the so-called Wal-Mart Effect. The constant pressure on prices influences the marketing strategies of both retailers and suppliers.

Keywords: Retail; Retail Market Structure; Central Europe; Price Wars; Price Promotion; On-line Shopping

JEL classification: L1, L81

Received: September 3, 2012; Revised: December 5, 2012; Published: December 31, 2012  Show citation