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News Release

Prague

Prague has the strongest high street retail in the Czech Republic and in Central Europe (excluding Austria)

Wenceslas Square and Na Příkopě street are the most important retail high streets in the Visegrad countries (PL, CZ, SK, HU). Pařížská street in Prague is the most luxurious retail street in the region


Prague, 23 April 2012 – Two kilometres of brand shops in Wenceslas square and Na Příkopě street form the main retail high street in Prague and in the Czech Republic. The Na Příkopě – Wenceslas square stretch, often referred to as the “Golden Triangle” is physically limited, with retailers perceiving specific areas as more attractive and thus maintains its rental levels. The most sought after locations within this high street are along Na Příkopě and the lower part of Wenceslas square, preferably the left-hand side starting, from the bottom. However, with the growing retail demand and evolution of the market, both sides of Wenceslas square are becoming more attractive to retailers. Palladium shopping centre naturally extended the high street towards náměstí Republiky and to some extent Na Poříčí. With space becoming more and more limited, retailers are being bolder and are slowly moving further along the streets initially perceived as secondary.  

The rent for a prime unit of 100 m2 along the high street remains at 180 EUR/m2/month, which is almost twice or three times more than the most expensive units in the best shopping centres in Prague. As the high street retail premises in the Wenceslas square and Na Příkopě street are used for high-profile flagship stores, this location (especially Na Příkopě street) is the most expensive high street in Central Europe (with the exception of Austria).   
”Na Příkopě street and Wenceslas square are undergoing a dynamic change. Many properties have been renovated and rebuilt with new retail premises coming to the market. Soon, new shops will open, such as Carpisa (ladies´ bags and accessoires), Pandora (jewellery and accessoires) and Reserved (family fashion). New retail premises will be provided by the following schemes: Diamant (under construction), Na Příkopě 14 (under construction), Václavské náměstí 47 (being prepared), Živnobanka building Na Příkopě 20 (being prepared) and Palác Rapid 28. Října 13 (being prepared),“ says Beatrice Mouton, Head of Retail Agency CEE at Jones Lang LaSalle.
Shops located in Na Příkopě and Wenceslas square benefit from a mixed catchment area comprising the business community, inhabitants living and working in the wider city centre, tourists and other visitors to Prague. In addition, the city centre remains a favoured weekend shopping destination of Prague inhabitants in general. The high footfall registered in this area positively influences the retail landscape, extending it to the adjacent streets such as 28. Října street, Jungmannovo náměstí, Havířská street or náměstí Republiky. The shopping passages with an entrance from Na Příkopě street also benefit from the high pedestrian flow. Galerie Myslbek, Pánská pasáž and Slovanský dům are worth mentioning in particular as they target upmarket brands bordering on luxury retail, which are enhancing the downtown retail offer. Another area leading from Na Příkopě street which accommodates upmarket retailers is Havířská street, with Max Mara, Cerrutti, Baldinini, FreyWille and is soon to have Burberry. 
High streets are not only confined to Prague, but also emerging in some of the regional cities in the Czech Republic. However, in some cities (such as Ústí nad Labem, Liberec, Pardubice) it has been observed that retailers have relocated their shops to the prestigious or the only shopping centre in the city centres. The high street in these cities has been suffering a setback and has lost some of its importance. Over the medium to long term, we expect the high street to regain some of its attractiveness with the shopping centre located downtown acting as an anchor.
“Prague, with both Na Příkopě as a high street and Pařížská street being home to the luxury brands, is an absolute exception in the post-communist countries in Central Europe. In nearly all CEE and SEE capitals, shopping centres dominate the retail market in the city centres. Budapest is almost the only city following the high street pattern with Váci street, with its midmarket brands and Andrássy street, home to luxury labels,“ says Beatrice Mouton from Jones Lang LaSalle and continues: „The shopping centre market in the Czech Republic is well developed, with new shopping centre development activity having slowed down significantly in comparison to previous years. However, the high street remains high on retailers agendas for flagship stores that offer them the required exposure. The international brands considering entering the Czech retail market always request retail space along the high street and/or in the best performing shopping centres. Although it provides an opportunity for the landlords from the best shopping centres in Prague and Brno to refresh their tenant mix, landlords are not always able to respond to the demand. We anticipate that the demand for high street locations remains strong, especially the most sought after retail streets (be it either Na Příkopě/Wenceslas Square or Pařížská/Široká) as the examples of Tiffany, Bvlgari or Pandora show.“