Comment for HN: Czechs are saving and shopping more in discounters. Retail parks are getting stronger
The retail sector in the Czech Republic is going through a difficult period, with sales falling under the impact of sustained high inflation. However, this trend does not apply to all parts of the retail market. In a challenging economic period, it appears that consumers are increasingly looking for more affordable goods, leading to the expansion and slight growth of discount stores.
Growth in consumer confidence and our strategy
Despite continued risks in the economy and a slower return to central bank inflation targets, consumer confidence has been rising in recent months. According to analysts at Oxford Economics, the retail market is expected to grow by 6.2 per cent next year.
ZDR Investments' primary focus is on regional discount retail parks with a high proportion of food stores. "Our strategy is long-term oriented. This is based on the average remaining length of all our current leases, which at over six years is one of the longest in the market. If you add to this the fact that our yield over the last five years is approximately 50 percent, while the cumulative inflation rate is around 34 percent, it clearly shows that real estate can beat inflation in the longer term, even in an unprecedentedly high inflationary period," Roman Latuske, a partner of the group, commented to Hospodářské noviny on the current situation in the field of real estate funds. You can read his full commentary in the original article.