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News Release

Prague

DIY in the Czech Republic gets a second wind


Prague, 9 July 2012 – The Czech Republic currently has 141 DIY (Do-It-Yourself) or hobbymarket stores, i.e. large-size specialised shops selling goods for home improvement and the garden. Compared to 2010 with 134, we registered a 5% increase in the number of stores. Although DIY chains witnessed a certain slowdown in their expansion across the Czech Republic during the crisis, the outlook is now positive. Some chains have announced their expansion activities – either opening new retail units, enlarging successful stores, if possible, or relocating to larger units.     

„There are 6 main DIY operators on the Czech market, with the majority coming from either Germany or Austria (OBI, Baumax, Bauhaus, Globus Baumarkt and Hornbach Baumarkt). The only exception is Mountfield, a Czech company with the highest number of the shops in the Czech Republic. There are several reasons behind Mountfield´s successful expansion – first of all being early market entry (the very first store was opened in 1991 in Mnichovice close to Prague), various types of stores (ranging from large retail units on the outskirts of regional cities, to smaller formats in the local centres) and long-term successful marketing (introducing the legendary Wheel of Fortune and Béda Trávníček, an animated character tending gardens and cleaning swimming pools). In addition, the Czech Republic ranks in the third place – after Spain and France – in the EUSA listing for the number of private swimming pools,” says Beatrice Mouton, Head of Retail Agency at Jones Lang LaSalle CEE.       
„Out of the 141 DIY stores in the Czech Republic, 35 stores or 25% of the stock is located in Prague and Central Bohemia. The capital and the adjacent region combined, have the largest population (about 2.4 million people or 23% of the Czech Republic population) and register the highest number of the family houses and spending power in the Czech Republic,“ says Beatrice Mouton adding: „Prague and Central Bohemia are followed by the City of Ostrava and the Moravia-Silesia Region (with 17 DIY stores and a market share of 12%) and the region of Ústí nad Labem (15 DIY stores with an 11% market-share).“      

 

DIY stores are specific in terms of their space requirements. Besides the large retail premises, they need low operational costs, large warehouses, a significant number of parking spaces being a car destination and having an excellent access by road. These requirements pre-define the locations where they can be found – in the outskirts of the city next to highways. In contrast to other retail chains, DIY stores tend to own their premises, but some chains do also lease space or potentially sell them via the sale and leaseback formula.