Discounters develop in CEE

The expansion of food discounters in CEE is still going strong.
Whereas in Austria many companies have already switched to branch network optimisation by smallscale relocations or renovations, the trend in many eastern European countries is still classic expansion.

For example the Penny group who took over 146 Plus locations last year in the Czech Republic and therefore nearly doubled its number of outlets. As a result the only other present discounters in the Czech Republic besides Penny are Lidl and Profi and two local competitors (Coop Diskont and Flop Market).

Most international companies can be found in Hungary – among them Aldi, who just like Lidl in Hungary is constantly opening new shops. But in those typical expansion countries like Hungary, the Czech Republic or Slovakia the market is slowly changing into cutthroat competition, as the case of Plus in the Czech Republic showed.

In addition to the competing regular supermarket chains, discounters in CEE have other competition by the large Hypermarkets and in some countries also by Cash&Carry markets such as Metro. These Cash&Carry markets have a unique position in a few countries because, like in Serbia, they have taken the role of Hypermarkets and are intensely used by the population.

In general it can be said that the markets in CEE and there especially in the countries of former Yugoslavia still have enough potential for further expansion.