German drugstore chain Müller enters the Czech market — competition set to intensify

Hot on the heels of Danish chain Normal, another major player in the drugstore business is preparing to enter the Czech Republic — Germany's Müller. This is revealed in a report by Cushman & Wakefield on the development of the commercial real estate market in the first half of this year.

According to Cushman & Wakefield representative Jan Kotrbáček, Czechia — and Prague in particular — is becoming a natural gateway to Central Europe for both premium and mass-market international brands. He notes that well-developed shopping street infrastructure, the renovation of key locations, and the rising purchasing power of local residents are creating an environment with real potential for long-term brand growth.

Tomáš Prouza, president of the Confederation of Commerce and Tourism, sees the arrival of new chains as good news, above all for Czech shoppers. He points out that the Czech drugstore market already offers a wide range of choice, with two strong players currently operating on it — and the arrival of Normal and Müller will only intensify competitive pressure further. In his view, competition is simply the best way to push retailers into offering customers the optimal balance of price, assortment and service.

Prouza notes that the real question is whether these new concepts will actually change Czechs' shopping habits when it comes to household and personal care products. While Danish chain Normal is betting on consistently low prices, German chain Müller is something quite different from a classic drugstore. Thanks to its exceptionally broad product range, the chain will also compete with perfumeries, toy shops, stationery stores and homeware retailers — meaning the competitive pressure could be felt across a much wider slice of retail.

Germany's Müller grew out of a business founded in 1953 by trained hairdresser Erwin Franz Müller in the Bavarian town of Neu-Ulm, eventually becoming a major chain with more than 950 stores across nine European countries. According to the company's website, it now employs around 35,500 staff plus up to 850 trainees, stocking roughly 190,000 product lines on its shelves — alongside drugstore goods, this includes perfumes, toys, stationery, homeware, natural cosmetics, health foods and pet supplies.

Müller began its expansion into this part of Europe via Slovakia, opening a store in Bratislava in April and another in Nitra in May. The barrier-free stores there operate seven days a week, and in the first days after opening the company offered customers a 20% discount on the entire range.

Despite the heightened competition brought by the two new chains, Prouza says this won't necessarily trigger a broad drop in prices for this category of goods. To make a real dent in the market, the newcomers will need to quickly build networks of several dozen stores each and invest heavily in marketing. The chain likely to feel the most pressure, in his assessment, is Teta drogerie, whose customers tend to be more price-sensitive.

Source: denik.cz