Pařížská is expanding to the surrounding streets
Luxury brands are seeking new Prague sales outlets
According to the latest survey conducted by CBRE, the global leader in commercial real estate services, an expansion of global luxury brands is underway on the Czech market. Prague is a popular destination, largely Pařížská street and established business zones in the city centre, thus putting pressure on demand in the retail properties sector with businesses expanding into the surrounding streets.
Many companies prefer the concept of opening their first store in the lucrative spot. Subsequently, after the introduction of the brand in a given market, it is possible to open more stores in less interesting locations, as customers are already familiar with the brand and are willing to find the nearest store and go there. The Czech Republic, and mainly the city of Prague, are increasingly becoming a popular target for luxury brands that are entering the Central and Eastern European market. Sellers of new brands largely prefer Pařížská a street or the centre.
The capacity of the most famous shopping street in Prague, Pařížská, is already quite crowded. To satisfy client requirements, the existing business zones have been expanding, not only luxury fashion shops. HUBLOT has opened a shop offering watches recently around Široké Street, as has jewellery dealers Boucheron or The Brands. You can now buy luxury accessories by Cerruti in Havířská street. The same trend is evident in sales zones, focusing on the middle and lower market segments, including Na Poříčí Street, Wenceslas Square and the Revoluční Street, which have expanded into Národní, Jindřišská and Vodičkova Streets and in the opposite direction to V Celnici street. In this area you can visit iStyle, HTC, Topshop or Dormeo stores and a series of gastronomic chains. This is mainly those parts of the streets adjacent to the established business districts (see map attached).
Source: CBRE Research
Shopping centres can provide an alternative to the “High Street”. A typical example is Palladium, which is located in a busy area, and is visited by many tourists. New brands have well-connected and established sales outlets at their disposal. However, this is based on the availability of high quality retail space. Key tourist areas like street Celetná, Rytířská and Karlova streets remain undeveloped in terms of retail space, with many visitors strolling daily. Typically, there are souvenir shops, but also gastronomic establishments such as Cafe cafe, as well as a fashion stores like Replay and Lui Jo.
CBRE Group, a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2016 revenue). The Company has approximately 75,000 employees and serves real estate investors and occupiers through approximately 450 offices worldwide (excluding affiliates). CBRE offers a broad range of integrated services including project management; property management; investment management; valuation; property leasing; strategic consulting and research and consulting. In the Czech Republic, CBRE has almost 350 employees and manages nearly 70 commercial premises with a total area nearly 1.2 mil. sq. m. Read more at www.cbre.cz.