JLL: Luxury retail in Prague is booming (CZ)

Parizska street in Prague, the most expensive luxury shopping street in Central and South Eastern Europe, has been enlarging its offer of mono-brand as well as multi-brand shops. Despite the economic situation, the brands of luxury fashion, accessories, jewelry and watches have been renovating/and enlarging their premises in Parizska or even entering the Prague/CEE luxury market.

"Luxury brands, repeatedly reporting record sales and double-digit annual growth, have been capitalizing on consumers' flight to high quality, longevity and timeless value during the crisis. In the last few years the retail market has evolved extremely and in particular have observed a steady development of the luxury market with a number of luxury labels having entered the Czech market," says Beatrice Mouton, Head of Retail Agency at Jones Lang LaSalle CEE.

"Parizska Street with its elegant historical buildings provides the perfect environment for luxury brands to show case their products. Although it is away from the main tourist flow, its proximity to the Jewish quarter places Parizska on the tourist route. Both the local and foreign clientele appreciate and favor Parizska's discreet and elegant surroundings to shop for luxury labels.

The dynamic change that Prague's luxury retail street has been undergoing is attaining a more prestigious position with the refurbishments and enlargements of existing retail units as well as new shops being opened. This demonstrates an increased demand in luxury goods in the Czech capital."

Brands that have recently opened their stores on Parizska or in its close vicinity include: Fendi (fashion), Dolce & Gabbana (fashion), Bvlgari (jewelry), Tiffany (jewelry), Rolex (watches), La Perla (fashion), Cvstos (watches).

Brands refurbishing/and enlarging their units include Dior (fashion), Burberry (fashion), Salvatore Ferragamo (shoes and accessories).

Brands that are due to open their shops in Parizska or its close vicinity in 2013 include Azra (watches and jewelry), Omega (watches), Armani Junior (fashion) and Loro Piana (fashion).

The physical limits of Parizska is steadily driving new demand to open outlets in adjacent streets – in Old Town Square (currently Cartier and Girard-Perregaux, recently Azra and Omega), in Kostecná Street (currently Agent Provocateur, recently Cvstos) and Siroká Street (for example Baldinini and La Perla).

"The most sought-after units are at the beginning of Parizska (close to Old Town Square) and/or in the flagship stores of renowned luxury brands. The rent for a 100 m² retail unit in Parizska Street varies from €125-140/m²/month," adds Filip Kolmer, Senior Consultant in the Retail Agency at Jones Lang LaSalle Prague.

The Prague fashion district, where Czech fashion designers such as Klára Nademlynská, Tatiana Kovariková, Beata Rajská and Timoure Et Group have their boutiques, offering a small series of pret-a-porter and tailored fashion design, has been established in the close vicinity of Parizska street, namely in the streets Dlouhá, Dusni and V Kolkovne.

"Prague, with both Na Prikope as a high street and Parizska street being home to luxury brands, is an absolute exception in the post-communist countries in Central Europe. In nearly all CEE and SEE capitals, shopping centers dominate the retail market in the city centers. Budapest is one other city with a developed high street with Váci Street, with its midmarket brands, and Andrássy Street, home to luxury labels," says Mouton.

Prague high street (Na Prikope/Wenceslas Square) downtown and its luxury streets (Parizska /Siroká) remain high on retailers agendas for flagship stores that offer them the required exposure. We anticipate the demand for the city center and Parizska/Siroká Streets to remain strong, as the examples of Tiffany, Bvlgari and Rolex show."

Source: Jones Lang LaSalle

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