Prague is still attractive to new brands
New brands entered the Prague market in 2014 including Adidas NEO, Tosca Blu Moncler and Von Zeiten
The Prague market is still experiencing an influx of new brands. Twelve international companies opened their branches in the last twelve months alone. Even though Prague is on the 38th place in the world market in terms of the entry of new brands, it occupies the same place as London, Madrid, Munich or Vienna and outperformed cities such as Barcelona, Rome or Milan, which had only half the number of international brands last year.
The most attractive brands worldwide are those coming from the USA (26%). In addition to America, other sought-after brands are from Italy (14%), Great Britain (11%), France (10%) and Spain (6%). German companies, for instance, have begun to show considerable activity on the Czech market due to its geographical proximity – three German brands (21%) opened their shops in Prague in 2014. Other retailers showing a long-term interest in Prague are copying the global trend originating mainly from the USA and Italy (14% in 2014).
“Even though it may seem that the composition of individual brands across various retail sectors are well-represented, new brands still have a chance to appear on the market. Many retailers are coming, but some are also leaving. Several foreign shops have closed their doors in the Czech Republic over the past three years, primarily fashion brands such as Giga sport, KappAhl, Charles Voegele, Jackpot & Cottonfield and Mixer.“
|New brands in CZ in 2014|
|Kiehl’s Since 1851|
“Some luxury brands entered the market first as mono-brands through partners or multi-brand shops, such as Michael Kors. In recent years, however, we see that the parent companies are taking business from their partners and creating their own unique mono-brand concepts (so-called “Concept Stores”) that try to use their interior and atmosphere to cater for a specific group of customers for which the luxury brand is aimed at,” said Tomáš Beránek, Head of Retail at CBRE when explain the strategy of new shops on the Czech market.
The vast majority of new brands appearing on the market belong to the fashion sector, along with sports clothes and accessories. Regarding the price levels, half of the retailers focus on the middle category and the second half are aimed at the higher price category and business, which demonstrates Prague’s good position in comparison to other European cities.
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.