Czech capital has highest number of luxury brands in the region
Prague, March 18 (ČTK) — Prague is the ninth-most attractive market for international retail brands in Europe and offers the highest number of luxury brands among the cities in Central and Eastern Europe except for Moscow, according to an analysis of company JLL (earlier Jones Lang LaSalle) published today.
Of the 20 luxury brands represented the most in European cities, only three are missing in the Czech capital, namely Bally, Giorgio Armani and Chanel.
Luxury brands open their own shops in Prague, tailored to the Czech market.
“Prague’s position within the luxury segment is unique in the region of Central and Eastern Europe. Seventeen out of the 20 most represented luxury brands in Europe have their own shop in Prague, the so-called mono brand,” said JLL market research department senior analyst Blanka Vacková.
In other countries in the region, most retailers enter the markets through shopping centers, and only then do they open their first shops in local shopping streets if they find suitable areas.
The result is that these shopping streets lag behind the shopping centers. Budapest and its shopping streets Andrássy and Váci are the only exception, JLL retail department head for CEE Beatrice Mouton added.
The main shopping streets in Prague with the highest number of luxury brands are Pařížská and Na příkopě and the lower part of the Wenceslas Square.
Na příkopě is the most expensive street as far as rent is concerned. Retailers here pay up to 180 euros (4,950 Kč) per square meter. Pařížská Street has caught up with Na příkopě in the past few years. Pařížská is known as the synonym of luxury.
“Prague has one of the highest GDPs per capita values in Europe. At the same time, it is a city with unique historical monuments, thanks to which it is one of the most popular tourist destinations in the world. Strong local demand exists here as well,” said JLL real estate market research department head Ondřej Novotný.
Regular growth in the number of tourists, in particular from Russia and China, is also good for luxury retail brands.
“Both groups are very important for Prague retailers. The Chinese focus mainly on luxury goods like clothing, watches and jewelry. This is why many shops in Pařížská Street hire Chinese shop assistants,” Vacková said.
“On the other hand, apart from luxury goods, Russians are also interested in higher medium category goods,” she noted, adding that Russians contribute up to half of sales from tourists outside of the European Union.