PMR Insight: Grocery retailers hold strong position on the Czech cosmetics market
Grocery stores such as hypermarkets, supermarkets and discounter stores continue to maintain their strong position as a distribution channel of the cosmetics retail market in the Czech Republic by attracting customers with increased levels of special price offers and discounts for brand products. In 2012, their market share totalled approximately 38%, according to the PMR report Cosmetics retail market in Central Europe 2013.
Yet hypermarkets are the leading format for grocery stores, as they generate about a fourth of the market share. In the hypermarket segment, there are five active operators who altogether run almost 300 outlets. The total retail area of hypermarkets in the Czech Republic consists of 1,326,000 m2, according to the report from GfK. Kaufland has the largest number of shops. However, hypermarkets operated by Tesco, when compared to the Kaufland, Albert, Globus, and Interspar stores, have the largest average area.
The growing popularity of private labels prompted a number of modern grocery retailers from different retail segments to extend private branding to cosmetics products as well. In grocery stores, the share by total sales of the health and beauty range (personal care) oscillates from 1% to 8%, depending on the store/chain, according to aforementioned PMR report.
For instance, Penny Market, the leading discount chain in the Czech Republic, offered at the end of 2012 among its private brands Akloa and Aurate cosmetics. The runner-up in the Czech discount segment, Lidl, had cosmetics and toiletries under the Cien private brand on its shelves.