Cashing in on Czech passion for sports.

The Czech love of sports could give the country's foremost sporting retailers a head start in the race for sales. Crucially, merchandisers expect the economic downturn not to make a big dent in demand.

Store managers forecast that Czech customers will spend money on sports fashion, shoes, sports equipment as well as sports activities, providing openings for Hong Kong suppliers which may not have detected rising demand in an unfamiliar market.

Some of the largest sports chains in the Czech Republic intend to open up to tens of new stores apiece in 2009.

Vit Podesva, who heads a Czech INTERSPORT branch says: "we would like to increase the number of stores in the Czech Republic from the current 33 up to 50 in a couple of years."

Recently, similar plans were revealed also by Hervis Sport: "at the moment, we own 21 shops. In five years, we would certainly like to add at least 10 new ones," says Natalie Marcenkova, from the company's marketing department.

Sports goods sales have been growing rapidly. An average Czech family spends Euros893 on sports products, compared to Euros80 just over two years ago, according to a survey conducted by INCOMA Research and GfK, both consumer market specialists.

Almost 50% of the sector's revenues come from sports clothing sales. Also, over half (53%) of the country's population of just over 10 million indulges in some kind of sporting actively, averaging 140 days per year. Czechs particularly enjoy swimming, hiking, bicycling, soccer and downhill skiing.

The larger chains are feeling confident, particularly after the 2008 Christmas and post-Christmas sales turnovers were surprisingly upbeat. In fact, better returns are expected this year, says David Sedivy, Spokesman for Gigasport, another large chain.

Sales could also be assisted by the weather. "The winters in the Czech Republic are very cold and we can expect them to last relatively long. Bulk purchases of winter equipment would well balance eventual drops in sales, " explains Robert Nerpas, the Spokesman for the country's largest sports chain, Sportisimo.

Sportisimo also expects to add up to 50 new stores to the current 52. "This year, we'll open 10 more shops," promises Nerpas.

En route to sales.

Foreign retailers have been cashing in. "It seems that the crisis affected mainly non-branded, small stores rather than well-known and established brands in the field of sportswear and equipment," says Gabriele Fenningerova, from Austria's INTERSPORT Osterreich. Its filial company in the Czech Republic was able to boost its annual turnover by Euros38.5 million last year.

Sports goods distribution in the Czech Republic is experiencing a new retail trend, called e-tail, or online sales. The first specialised e-tail store was launched by Sportisimo at the end of the last year.

Natalie Marcenkova from Hervis responds to this challenge: "it is a question of a couple months and we will start our shop online."

Gigasport is also considering internet option and according to David Sedivy, a Gigasport e-tail project, including a logistical backup business, will be ready in 2009.

from Ivona Taborska, Prague Consultant

Images courtesy of:
INTERSPORT
Gigasport