Aug 28, 2024

German Drugstore Chain Müller Eyes Czech Market

Müller, a prominent German retail chain known for its drugstores, toys, and other consumer goods, is preparing to expand further east.

The company plans to open its first store in Slovakia this year, with the Czech Republic likely to follow. However, entering the Czech market won’t be easy, as it is already dominated by established players such as dm, Teta, and Rossmann.

The recent entry of the Polish drugstore chain Hebe has further intensified the competition.

In mid-August, Müller announced its intention to continue expanding into Slovakia, where it has already registered a dedicated internet domain. “Müller has successfully operated in neighboring countries like Austria and Hungary for many years, and also has positive experience in Slovenia and Croatia, making it well-prepared for its entry into Slovakia,” the company stated.

However, the company’s ambitions appear to extend beyond Slovakia. Müller has posted a job opening on its website for an expansion manager for both Slovakia and the Czech Republic.

Many in the Czech retail industry expect Müller to enter the Czech market soon, although the company has not confirmed when this might happen.

Zdeněk Skála, managing director of analytics firm Skála a Šulc, agrees. “While the market is saturated with both major and smaller players, a new competitor with a smart price and marketing strategy can always find a niche,” he adds.

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Among the existing players, the domestic chain Teta operates the largest number of brick-and-mortar drugstores in the Czech Republic, with around 500 locations. The German chain dm had 255 stores as of September last year, while another German competitor, Rossmann, has been actively expanding its network in recent years.

What sets Müller apart from its competitors is its diverse product range. Besides drugstore items, Müller stores also offer fashion accessories, CDs and DVDs, toys, and stationery. In Germany, the chain operates around 600 stores and has a substantial presence in Austria, Croatia, Hungary, Slovenia, Spain, and Switzerland.

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