The impact of the credit crunch and inflation is threatening to pitch emerging retailers in Central and Eastern Europe into difficulties, providing acquisition opportunities for Western groups.

Growth in the region, which was 56.4 per cent between 2002 and 2007, will slow, according to research by Verdict. It will also be harder for local players to raise expansion finance.

Verdict senior analyst Daniel Lucht said: “As a consequence of the global crisis, we predict cashflow management problems for many smaller-scale players. These could present great takeover opportunities for the multinational heavyweights, provided they can raise the capital to stem an acquisition or merge against the backdrop of the credit crunch.”

The Central European retail market was worth €179 billion (£145.41 billion) last year.

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