Europe's retail landscape is undergoing a significant transformation, with leisure operators at the forefront. According to the latest European Retail Radar by Cushman & Wakefield, leisure concept operators increased their store count by 15% and expanded their occupied retail space by 20% in 2024 compared to the previous year. This surge underscores the growing consumer appetite for experiential retail environments.
“Leisure concepts are no longer an add-on, but a key part of a successful retail mix. Owners and brands are now emphasising the experience, footfall synergies and time on site. Our shopping centre clients are adapting to this change by transforming the internal layout of their spaces to accommodate larger, high-traffic leisure concepts,” said Robert Skládal, Head of Shopping Centre Leasing and Releasing at Cushman & Wakefield.
Prime rents have seen an uptick across Europe's leading shopping streets, shopping centres, and retail parks. Notably, 44% of the 209 tracked high streets recorded positive rental growth, a significant increase from 30% at the end of 2022. Retail parks reached new rental highs, reflecting robust demand. In Prague, key high streets like Pa?ížká and Na P?íkop? have experienced substantial demand growth, particularly from fashion and leisure operators.
“The luxury segment in Prague is developing rapidly. Brands create a complete luxury experience and compete intensely for the best available locations. We expect more momentum in this regard as more global retailers see Prague as a key location in Central Europe. In the coming months, we expect to see the opening of Ermanno Scervino, MaxMara, Grenardi, Damiani, Pasquale Bruni, La Table and KodlContemporary stores on Pa?ížská Street,” noted Marjan Gigov, Specialist for Leasing Premium and Luxury Retail Spaces CE at Cushman & Wakefield.
Fashion retailers remain the dominant segment, accounting for 39% of floor space and nearly a third of transactions. Brands under H&M and Inditex, along with sportswear retailers like JD Sports and Sports Direct, have been particularly active. The Food & Beverage sector also showed resilience, with a 3% increase in store numbers, led by established names like McDonald's, KFC, and emerging players such as Hawaiian Poke Bowl and bubble tea brands.
As retailers navigate rising rents and broader industry challenges, there's a clear shift towards strategic location planning and creating immersive retail experiences. This trend presents opportunities for investors and developers to capitalise on the evolving demands of the retail sector.
People Mentioned:
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Robert Skládal – Head of Shopping Centre Leasing and Releasing, Cushman & Wakefield
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Marjan Gigov – Specialist for Leasing Premium and Luxury Retail Spaces CE, Cushman & Wakefield
Companies Mentioned:
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Cushman & Wakefield – Real estate consultancy firm
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H&M Group – Fashion retailer
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Inditex – Fashion retailer
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JD Sports – Sportswear retailer
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Sports Direct – Sportswear retailer
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McDonald's – Fast food chain
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KFC – Fast food chain
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Hawaiian Poke Bowl – Food & Beverage brand
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Bubblify – Bubble tea brand
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Crazy Bubble – Bubble tea brand
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