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Retail in Transition – Case Study Prague
Sunday, December 14th, 2008 | University | No Comments
In terms of my thesis, which is in process right now, I`ll introduce the theme to you in this new series of upcoming posts!
During the economic transition in the Czech Republic since 1990 there`ve been started reforms on several levels. Restructuring processes in policy, economics, society as well as administration have been initiated by Vaclav Klaus and the so-called “Shock-Treatment”. This transition methodology should guarantee a fast transition from a centrally planed- into a market economy.
A significant role played the restructuring of the retail sector, which is very sensitive to economic changes. It`s sudden expansion had several impacts on real estate markets as well as the city structures. Most important processes if the transition in retail are first, a creation of a estate market, second, a diversification of city functions, third, a scarcity of land in the city. The logical consequence of this development is a dislocation of retail to the periphery of the city (“Greenfield Site”) and therefore a declining buying power in the city.
Parallel to structional changes in the retail sector, an alteration process started also on the state-administration level. The abolishment of socialistic planning ministries and the formation of new governmental bodies led to several administrative gaps, which diminished just years later. Deficiency of competence and force of achievement as well as the absence of a city development plan gave international investors plenty of rope in their location decision strategies.
In the course of reform consolidation and elaboration of a strategic city development plan for the next two decades until 2020, the line-up of stakeholders in Prague retail began to change.
In the context of those developments the exiting question of distribution of power and competence in terms of location decision processes in Prague retail sector will be analyzed and partly answered in my theses.
By means of 4-5 retail projects out of different phases of transition (break, growing, orientation, modernization) shall be exemplified the formation and change of stakeholder line-up as well as their location decision processes.
Changes of the spacial retail allocation structure (city vs. periphery) and its importance in terms of city planning strategies are further aspects of transition of retail in Prague.
Retail in Eastern Europe – Czech Republic
Tuesday, October 28th, 2008 | University | No Comments
From the mid-1998 the Czech retail market showed a continuous growth which speeded up sharply in 2005. Retail sales increased by 4,9% in 2007. Since then, this dynamic growth has apparently slowed down and the market especially for shopping centres and hypermarkets reached saturation at least in cities like Prague.
The allocation of retail area is dominated by the metropolitan region of the capital Prague, the Moravian-Silesian Region, Ustecky Region and South Moravia (see fig.1) with 120-150m²/ p.c.
It is not so long since 1998 there have been just 7 hypermarkets in Czech Republic, whereas the number increased to 231 hypermarkets in 2008. By now the penetration of hypermarkets is the highest in the Central Europe region (16 per 1 Mio. inhabitants). An important reason for this continuous expansion is the high preference for large-area shopping places for grocery by the Czech. With 38% market-share hypermarkets dominate the grocery shopping, followed by the discounters (25%) and supermarkets (16%). Especially in the category of durable food products hypermarkets retain their top position (33-39%). Generally, large-area food retailer (hyper-/supermarket, discounter) have got high preferences with 75-83%. Smaller specialized stores have an inferior position but play a big role at the fresh-food market segment.
Consumer Market Trends
In future increasing per-capita incomes will change the demand situation at the retail market in Czech Republic. The needs and motivations of customers will become more and more diversified. Their increasing interest in “life quality” products such as bio-food and generally quality fresh food (bread, pastry, meat etc.) will strengthen the position of specialized shops with more service and personnel quality. Approximately one half of Czech prefers to purchase those goods in small non-self-service stores or smaller groceteritas (e.g. butchers`s). The growing request for “new/affordable luxury”, covering also the higher interest in health-conscious life, and the preference for specialized drugstores, contribute to the withdraw of hypermarkets at those sensitive good categories. The change for better, in terms of smaller store formats, a more diversified range of products, better service and performance characterize the main brand change strategies of big retail chains in the near future.
The concentration of trade will go on and a small group of three or four retail chains will get segregated. In 2005 the competitive Czech market pulled out major retail chains (Carrefour, Edeka, Delhaize) hence about 45% market-shares are held by just a few retailers (Metro, Ahold, Schwarz, Globus). Besides the consolidation of the existing retailers many experts anticipate the entry (through acquisitions) of retail giants, as Wal-Mart or Aldi.
According the project “Retail Vision 2010” by INCOMA Research and Blue Strategy, the fastest growth is expected with discount stores from current 13% to 17% in 2010 and small-scale hypermarkets (up to 4 000 m²). Several retail chains build new hyper-/ and supermarkets in smaller versions to make it possible to operate in areas with a smaller number of customers or in city centres. A shift of destination for new openings of hypermarkets is expected. Townships below 50 000 inhabitants and even with only 15 000 inhabitants are targeted on by big retail companies as Kaufland, Hypernova or Tesco.
To Be Or… As A Characterization Of Hamlet
Wednesday, February 27th, 2008 | Book Reviews | 5 Comments
Hamlet’s classsic “To be or not to be…speech” really shows who he is. Obviously Hamlet is horribly depressed. We have already seen several examples of this, but this speech gives us a clear picture of his sadness. More importantly however, his speech shows his weakness and indecisiveness. Hamlet is consistently melancholy, but he never really acts on it; he just kind of wallows around, full of self-pity and loathing. Throughout the play he seems to wish for death and here we find out why he doesn’t bring it on himself. This speech provides us with a clear understanding of Hamlet and his motivations. He feels that his troubles and his heartache are to to much to deal with. While this speech is not the first time he has mentioned suicide, it does give the clearest picture of just how far gone he is. He seems to be weary of life, as he consistently says to sleep while refering to death. As though he only wishes to rest and forget his troubled soul. It is not that he feels there is too much pain or strife in life, but that he is tired with dealing with it and exausted by his efforts. More interestingly, Hamlet shows here his fundamental cowardice and fear.
He has been going on for the whole play about how terrible his life is and how much pain and suffering he has had to endure, and he starts out the speech on this note. This is the first indication of his weakness. Hamlet, it seems, would rather bemoan his troubles than solve them. He goes on and on about his crappy life but rarely, if ever, even tries to do anything about it. Even in his desire for death he will speak but not act. He doesn’t decide against suicide because of some noble realization (that life is far to precious to be wasted for example), he is just too scared of the afterlife. Hamlet’s motivation for wanting to die and also for remaining alive gives some of the best insight into his personality. In this speech Hamlet elects not to kill himself and discovers why he has not yet done it.
His reason for choosing life over death is also shown here. He is too afraid of the unknown, of the undiscovered country to act on his desire. It is not so much that he is afraid to act, just that he has become so despondant that he doesn’t really care enough to do anything. All of his actions thoughout the play, up through the end of the story, can be viewed as a consequence of his despondence and cowardice. Hamlet lays out in this speech exactly what kind of person he is.