Retail Chains in Czech Republic to Cut Margins, HN Says

Retail chains in the Czech Republic including Koninklijke Ahold NV will probably reduce their profit margins rather than increase prices after value-added tax increases by one percentage point next year, Hospodarske Noviny reported, citing company spokesmen.

Tesco Plc (TSCO) hasn’t yet decided whether it will raise prices or absorb the cost, the newspaper said, citing company spokesman Jan William Dvorak.

To contact the reporter on this story: Ladka Bauerova in Prague at lbauerova@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net

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