Czech online grocers look east and west beyond their home market

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Two Czech online grocers - one a start-up ‘unicorn,’ the other backed by a billionaire businessman - are taking on Europe's biggest supermarkets to feed growing appetite for home grocery delivery

Rohlik and rival Kosik, backed by Czech billionaire Daniel Kretinsky, are both seeking to apply models that have been successful at home.

Last year, the privately-held company drove revenue 33% higher to 574 million euros. Cupr said it had generated profit in its home market but posted an overall operating loss as it pursued expansion. The proportion of shoppers using online grocers is estimated at less than 10% across most of Europe, according to data cited by McKinsey, and at just 4% in Germany. That means the potential for growth is massive, in a market that lacks dominant players, analysts say.

"Competition is still mainly driven by stationary retail but a small number of online grocery players are gearing up in each market to become leading e-grocery platforms."As Rohlik bets on Germany, Kosik is looking eastward, entering the Slovak market and expanding in Bulgaria. Germany is not yet on Kosik's radar, he added, although it will eventually turn its attention to other central and eastern European countries.

 

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