Discusses the distribution network within the country from how products enter to final destination, including reliability and condition of distribution mechanisms, major distribution centers, ports, etc.
Last Published: 10/19/2018

Distribution channels in the Czech Republic are similar to those in the European Union. U.S. products are typically shipped to a major European port (often Antwerp), and then transported to Prague by truck or rail. Smaller products often come by air to Prague Airport. The area around Prague has many warehouses and distribution centers, and is the distribution hub for the country.

Prague’s winding cobblestone streets are lined with tiny shops -- groceries, pharmacies, music stores, clothing boutiques, and bookstores. These small shops face strong competition from European ‘hypermarkets’ and shopping malls with a wider selection, lower prices, and extended weekend and evening hours. The larger stores have become increasingly important to the distribution mix over the last decade, attracting customers that used to purchase through traditional retailers. Swedish IKEA, British TESCO, and German OBI, Hornbach and Baumax, among others, operate in multiple locations in Prague and have expanded throughout the nation. At this time, no U.S. big box retailers are present in the market.

Specialized outlets are still important venues for reaching informed customers who seek quality products with specific performance. Virtual shopping is gaining in popularity, with several Czech firms attracting clients with cost savings and home delivery, offering everything from contact lenses to car tires. Some global internet marketplaces are active with localized sites, but most major U.S. firms are still absent. In 2015, U.S. firm Amazon.com opened their Central European corporate offices in Prague and a fulfillment center near Prague. As of the end of 2017, the company employed 4,500 staff.  Amazon is continuing to expand its operations in the country.
Logistics capabilities in the Czech Republic mainly serve foreign markets due to the country’s strategic and central location. The Czech Republic has excellent flight connections and warehouse space is readily available.
 

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