Internet sales, which amounted to CZK 43 billion in 2012, would be generated by 46 standard retail projects (shopping centres or retail parks). This is the result of the analysis of Cushman & Wakefield, based on data from APEK (Association for electronic commerce), the Statistical office of the Czech Republic and proprietary data of Cushman & Wakefield.
This also means that besides adding on average almost 8 real shopping centres and retail parks between 2001-2012, the Czech Republic has also added on average 4 virtual shopping centres a year (calculation of a virtual shopping centre is based on turnover of a retail project of an average size).
Czech Republic currently has 128 “real” shopping centres and retail parks larger than 10,000 sq m. The average size of a retail project is some 24,000 sq m.
“Both shopping centres and internet are modern retail channels that have expanded rapidly in the last decade. The comparison is approximate and serves only to visualize the size of internet sales segment,” says Michal Soták, Head of Research Czech Republic & Slovakia at Cushman & Wakefield.
“Moreover, based on data from the largest sales portal one visit to the web page generates approximately 3.5 euros of turnover. In shopping centres one visit to the centre generates on average approximately 7 euros of sales. Visitor rate to the most successful Czech internet mall is about five times higher than visitor rate to the top Prague shopping centers,” explains Michal Soták.
The two channels have very different composition of goods and services sold through them and are therefore not direct competitors. Internet sells articles that are easy to compare, have standardized parameters, are durable and can be delivered or picked up easily. Shopping centres sell things that you want to see, or try out before purchasing and they also ‘sell’ the experience from shopping and spending time out.
“The turnover on the internet has increased 40times over the last decade mainly thanks to the fast internet penetration to the Czech households and comfort of internet shopping. Despite that we do not expect the internet sales to reach importance of the “real” retail projects,” says Michal Soták.