New Discount Chain is Entering the Czech Market

The German discount chain Woolworth is launching in the Czech Republic, aiming to rival established players like Pepco, KiK, and Action.

Offering a wide range of products including clothing, household items, shoes, cosmetics, stationery, toys, and home textiles, Woolworth’s prices will typically hover around 3 euros.

This move places the company in direct competition with Pepco, Action, and KiK, all of which have been gaining traction in the Czech market.

For example, KiK is set to open 11 new stores this year, bringing its total store count in the Czech Republic to 240, according to the Seznam Zprávy website.

“The stores are not closing. I think they are doing well because people still want to save. They will buy a T-shirt in a Pepco store instead of in Gant,” commented Tomáš Soukup, director of the retail division at IO Partners.

As large retailers, including hypermarkets and electronics stores, scale back their operations, many are leasing vacant spaces.

At the same time, shopping parks are actively being developed. “Store sizes are naturally shrinking due to companies investing more in online and omnichannel strategies—where customers can view goods in-store and have them delivered, or vice versa,” explained Soukup.

However, Woolworth’s success in the Czech market is not guaranteed. Discount retailer NKD, for instance, closed five unprofitable stores this year, highlighting the fierce competition.

Still, NKD remains committed to its expansion strategy. “We are focusing more on shopping centers, as it has proven successful in the capital. In some retail parks, there is almost nothing left to rent,” said Jiří Wegmann, expansion manager for NKD in the Czech Republic.

Despite this uncertainty, Woolworth has found significant success in Germany. Founded 140 years ago, the chain has become the fastest-growing department store group in the country. Its long-term goal is to open 5,000 stores across Europe.

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