Czech Retailers Gear Up for Christmas Season, Prices Expected to Remain Stable

With the holiday season fast approaching, Czech retailers are already preparing for the Christmas rush. Despite the fact that people were strolling the streets in summer attire just a few days ago, stores have begun offering Christmas goods, filling their shelves with traditional Czech Christmas treats like “cukroví” (Christmas cookies). Additionally, retailers have introduced thematic offers related to baking. After two years of inflation, prices have stabilized, and retailers are eager to see how willing people are to spend during the festive season.

Most Czechs have a predetermined budget for gifts, and the prices of traditional food items are not expected to increase significantly. According to a survey conducted by GLS, more than 10 percent of Czechs plan to spend over 10,000 Czech koruna on Christmas gifts this year. The majority, however, expect to spend up to 5,000 koruna.

Agrarian analyst Petr Havel anticipates that prices will not fluctuate significantly. Therefore, Christmas expenses are expected to be cheaper or remain the same as last year. While butter, sugar, and eggs have recently become cheaper, some food items have seen slight price increases, such as potatoes.

Bakeries have reported similar order volumes as last year, with prices remaining steady. Retail chains are relying on attracting customers with discounts but do not expect dramatic increases in sales or prices.

Retailers like Tesco, Kaufland, and Ikea have either started selling or will begin selling Christmas products soon, including decorations, tableware, candles, and gift packaging supplies. Some have even reduced prices on certain products.

Other retailers are counting on promotional events, such as Black Friday at the end of November, to drive sales. Analyst Petr Havel predicts that many households have already depleted their budgets with higher energy costs and other expenses, making them more cautious with shopping.

E-commerce platforms are also preparing for high demand in the pre-Christmas market, especially for toys, electronics, clothing, books, and cosmetics. Many people are expected to opt for various types of gift vouchers. To ensure timely delivery of Christmas orders, e-shops are considering hiring new employees, part-time workers, and expanding warehouse capacities. This is to address frequent criticism regarding late delivery of Christmas orders.

In the Czech Republic, as in many parts of the world, the holiday season is an important time for retailers, and despite economic challenges, they are gearing up to make the most of this festive period.

Article by Prague Forum

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