If you are on the look-out for international retail opportunities, then Central Europe could be a better bet than some of the more traditional European retail markets. So says Jones Lang LaSalle’s ‘Destination Europe 2013 research into the presence across key European cities of the 250 most recognised retail brands.
Prague rates particularly highly – with more international retail brands than Barcelona, Berlin or Amsterdam. Prague also leads the field in terms of the presence of luxury retail brands - rated 13th overall in the Jones Lang LaSalle Index - with more luxury retail brands than anywhere else in the CEE.
The attraction of Prague for wealthy shoppers from Europe, Russia and Asia is plain to see on a stroll along one of its main shopping streets – Na příkopě or Pařížská – or through one of the many modern shopping centres that are springing up around the city centre. But this dynamism is also evident elsewhere in Central Europe.
Warsaw is a recognised hotspot for retail growth with many new shopping centres (perhaps by dint of its long winter, the average Polish consumer prefers covered schemes to exposed streets) and high street locations; while Vienna and Budapest are established retail markets in their own right.
With a regional population of 110 million increasingly-affluent consumers, Central Europe presents real opportunities for British retailers. Tesco is well established – with over 1100 stores across the Czech Republic, Poland, Slovakia and Hungary and an increasingly popular and successful on-line business.
The British High Street is well represented: with established operators like Marks & Spencer and Debenhams being joined by new UK interests like TM Lewin, SportsDirect and Karen Millen. The route into market is a mix of direct investment and franchising. M&S in the Czech Republic started with the latter, but have reverted to the former after buying their franchise holder out.
UK luxury brands like Burberry, Jimmy Choo, Agent Provocateur, Barkers and Churches are also easy to find. The Central European market is also becoming increasing sophisticated. TM Lewin shirts can be bought on-line from the UK and collected from Czech outlets; while M&S are developing their in-store offer to include expanded food and drink sections.
Having a clued-up and well-connected local partner is one important success factor. How else would you find out that Czech men are not partial (yet) to double cuffed shirts and cufflinks; but are increasing keen to invest in a dinner jacket for formal occasions?
If you are interested in hearing more, then join us at our CEE Retail Market Forum on Friday 6 December in the BIS conference centre in London; at which Jones Lang LaSalle analysts will present on the fast-developing CEE retail landscape; retail logistics and multi-channel routes to the consumer; while Tesco and TM Lewin reflect on their experiences in the region.
The retail sector is a priority for UKTI teams across Central Europe and they will be geared up to help you to take the next step following this event.