Internationalization in the Process of the Czech Retail Development

Over the last years, internationalization and globalization have been typical features of the retail development. Big retail chains expand their retail strategies and activities to many countries especially in East Asia, Middle and Eastern Europe and Latin America. Similar trends have been evident in the Czech Republic. Socio-economic and political changes in the 1990s accompanied by the process of economic transition, private enterprise development, procedures relating to demonopolisation, and decentralisation have brought dramatic changes in the retail sector. Evaluating the internationalization process of the Czech retailing, four periods can be distinguished in its development after 1990. The first period (1990 – 1994) was characterized by many organizational and ownership changes in the retail structure that brought its fragmentation. The first concentration tendencies associated also with the entry of foreign retailers were apparent in the second period (1995 – 1997). In that period of time, many international retailers came to the Czech market and tried to strengthen their position there. This brought not only stronger competition, new retail strategies and activities but also new retail formats such as discount stores, hypermarkets or cash- -and-carry stores. The presence and position of the international retailers demonstrated by their turnover and ranking in TOP 10 was getting stronger. The period in 1998 – 2000 can be characterized by relatively high level of internationalization and growing concentration and integration tendencies. International retailers were constantly increasing their market share and significantly influencing the retail scene in the Czech Republic. However, the development of the Czech retailing was not so dynamic after 2000. The development of retailing concentrated more on qualitative changes that were evoked by growing competition and needs to satisfy consumers.