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The Expansion of large scale Shopping Centres doesn´t slow down

Development of a number of hypermarkets in the Czech Republic
Regarding the expansion of large-scale shopping centres and hypermarkets, the last year recorded a new peak. As seen from updated issue of research "SHOPPING CENTER & HYPERMARKET 2006", carried out by INCOMA Research and GfK Praha, there were completed in total new 6 large-scale shopping centres and 31 hypermarkets in the Czech Republic, which is more than any other time in history.

All the new shopping centres (Centrum Chodov, Galerie Butovice, OKC Eden, Vaòkovka Brno, Varyáda Karlovy Vary, Olomouc City) can be considered among the 20 largest in the country. Centrum Chodov with over 200 tenants became even the largest shopping centre in the Czech Republic in regards to number of its outlets.

Within our complex research it was monitored totally 206 shopping centres, containing 4,197 outlets, 467 catering units, 53 leisure facilities and 337 service units. The most dynamic was the fashion segment (census recorded 1,111 fashion outlets and 406 shoe stores and leather goods).

The shift of the shopping centres closer to the city centres was evident by several modern shopping complexes – this rule was confirmed by the fact that from the six newly opened shopping centres 4 were in the city centre. The enlargement of the average floor space of the shopping centre was another significant trend. Currently there are 10 shopping centres operators with more than 100 tenants on the Czech market. Furthermore there are more than 30 shopping centres with 50 and more tenants.

Our research confirmed that the strongest magnet of largest shopping centres is still the hypermarket. The importance of shopping malls is growing – ca. 36% shoppers announced that they spend more time in shopping galleries rather than in hypermarket, while visiting the shopping mall.

The chain Kaufland opened the majority of hypermarkets in 2005. The chain Tesco, which strengthened their positions especially in regional towns, had experienced sharper expansion. By the 1.1.2006 there were 192 hypermarkets in the Czech Republic, the highest number in Moravian-Silesian region (30), followed by Ústecký and Støedoèeský region (20). Some cities such as (Opava, Karlovy Vary, Hradec Králové) are currently strongly saturated from the view of hypermarkets. In contrary there still exist locations with good potential opportunities.

INCOMA estimates that minimally 20 new hypermarkets will be opened in upcoming year. We can also expect that the market will be extended by several new shopping centres not only in Prague but also in smaller regional cities.

In 2006 the Czech Republic will exceed a level of 1 million m2 hypermarket sales floor and additional 1 million m2 netto sales floor in shopping malls, 100 thousands floor space are occupied by other type of outlets. In 2007 there is estimated even more shopping centres to be delivered than in 2006.


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