New competition in the non-food market, including products from pet food to toys, is coming to our territory in the spring. 2 new discount chainsAction and Tediwant to build dozens of stores on our territory.
The Dutch company Action and the German company Tedi have confirmed our entry into the market and the opening of our first store. On May 4 this year, 2 action stores will be opened in central and eastern Bohemia. By summer, 5 more stores should be opened in different regions of the Czech Republic. According to information published in the media, Tedi is not too late, as it is rumored that its first store will open on May 6 or 5 this year.
Both chains had planned to come to the Czech Republic for quite a long time. The action has established a company on our territory since 2014. However, neither of these 2 companies has yet indicated the exact location of the first store. There is only 1 certainty here, and in the domestic market for cheap goods there are more discounts, for example, than in the food segment.
Until this time, Pepco and Kiku Chain have dominated cheap goods in the Czech Republic. As for the new players, they are said to compete with these constants, but they are not. The established chain insists that its assortment only partially covers, since it emphasizes textile products. Both new incoming chains have focused on the non-food segment, where their business is the largest of a third of their sales for their current competition, while other categories have greater offers and of course offer customers greater opportunities to look for suitable goods elsewhere.
Kik currently has more than 200 stores and plans to open at least 10 in 2020. Kik confirms its successful year by modernizing its existing facilities as well as having official sales five percent higher than the previous year. According to a report published in the Commercial Register, Kik received 3.4 billion CZK, with a profit after tax of 24,500 million CZK.