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CEE: 66 Million people read promotional leaflets of retail chains

The results of the project "SHOPPING MONITOR Central & Eastern Europe"

The importance of promotional leaflets is still growing at the Central and Eastern European markets (Czech Republic, Slovakia, Poland, Hungary, Romania, Bulgaria, Serbia and Montenegro, Croatia, Ukraine represented by Kiev, Russia represented by Moscow and St. Petersburg). Recent study Shopping Monitor CEE based on the survey of companies INCOMA Research and GfK shows that the promotional leaflets of retail chains have influenced 66 million of people in the monitored CEE region – thatÂ’s more than half of the population - by the end of 2005. 39 % of shoppers receive the leaflets and just read them, however, there are households that read the leaflets and then also shop accordingly (15 % of households). There are big differences among particular countries – Slovaks read the leaflets very significantly (87 % households), 78 % of households read the leaflets both in the Czech Republic and in Hungary; on the other hand, the lowest penetration has been recorded in Serbia and Montenegro (the leaflets are read by mere 20 % of households there) and in Bulgaria (27 % of the households).

There are vast differences among the countries of the CEE region regarding the position of a particular retail format.  According to the Shopping Monitor study, hypermarkets are preferred as the main shopping place among 20 % of customers in the monitored CEE region. Discount stores are the main shopping place for 16 % of the households; however, their share shows stable growth in a long term and they are slowly replacing supermarkets, still the strongest retail format in the CEE region with its 24 % share. As mentioned, there are vast differences among particular countries: the most developed retail markets are in Hungary, Czech Republic, Poland and Slovakia where hypermarkets stand very strong. In the Czech Republic and in Hungary, approximately 35 % of households prefer hypermarket as the main retail format when shopping for food, on the other hand hypermarket is a preferred food-shopping place for mere 1 % of households in Bulgaria and 6 % of households in Croatia.

Shopping Monitor studies are processed for each national market separately, however, a combination of their results compiled and published in the Shopping Monitor CEE study shows the position of particular retail chains in the whole region as well. Retail chains consolidation and market concentration has reached a stage in the Central and Eastern Europe at which the position of particular chains can be compared at the regional level. The most preferred retail chain was Biedronka (Jeronimo Martins Group) at the end of 2005 - thanks to its exceptionally strong position in a large Polish market. According to the Shopping Monitor CEE 6,3 million customers have Biedronka as their main food-shopping place. Following positions are occupied by the chains expanding to a number of countries in the monitored CEE region – Tesco preferred by 6.1 million of customers, Kaufland preferred by 4.1 millions of customers, Metro/Makro (3.1 million of customers) and Billa (REWE group) with 3.1 million of customers.

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