Shopping centres dominate the retail industry in Central & Eastern Europe

Victoria’s Secret,  Primark and VanGraaf are the recent fashion debutants in the region

Mapic, 14 November, 2018 - Fast recent-cycle GDP growth, low unemployment and wage hikes add up to booming conditions for fashion in CEE says Colliers International in its recent research report “ExCEEding Borders - the fashion sector in the CEE-14 countries* -

Mark Robinson, Research Specialist, CEE explains:
“As disposable incomes climb continuously towards EU average levels, purchases of fashion apparel and accessories become ever more important as a driver of consumer spending. Fast recent-cycle GDP growth, low unemployment and wage hikes all add up to booming conditions for fashion in CEE presently”. 
Key findings from the report include: 
• Retail sales are growing in the whole region, with a cycle-high level of 11% in Romania in 2017
• Shopping centres dominate the retail industry in the region; the only market in CEE 14, where the high street segment plays a central role is the capital of the Czech Republic – Prague. The biggest shopping centres market in the region is Poland with nearly 500 schemes, totaling 11,8 mln sqm of GLA.
• Fashion anchors in the CEE-14 achieve prime turnover levels of 350-450 EUR/sqm/month
 •  CEE is still attracting international retail chains – spectacular debuts are taking place in Poland (Primark), Romania (Victoria’s Secret) and Latvia (Van Graaf) among others. Polish brands are very active in the region, including Sizeer, present in 7 markets (Lithuania, Latvia, Estonia, Czechia, Slovakia, Hungary and Romania).
• In addition to its presence in shopping centres, the fashion sector is also a driver of volumes in ecommerce in the CEE 14 – in four countries (Bulgaria, Estonia, Poland and Czechia) its share in total e-commerce sales exceeds 30%.
Fashion anchors in the CEE markets include H&M, LPP, Inditex, New Yorker, C&A and TK Maxx. Below is a compilation of all the major anchors in the region.

ExCEEding Borders graph

 

*Albania, Belarus, Bulgaria, Croatia,  Czech Republic, Estonia, Hungary,  Lithuania,  Latvia, Poland, Romania, Slovakia, Serbia, Ukraine.