Czech Republic most attractive for international retailers in CEE; Romania attracts most new entrances

2010-07-07

Europe is the most international of all retail marketplaces in the world. International retailers eagerly establish their businesses in Europe. The Europe-based retailers also in terms of entering new markets are perceived as one of the most active in the world. Despite the growing popularity of markets such as the Middle East and China, the Czech Republic still stands out in the CEE region in terms of the number of international retailers present in the country. Romania, on the other hand, stands out as the CEE country with the highest number of international retailers to enter its market in 2009.

CEE countries with top 50 countries in terms of international retailer presence
The Czech Republic attracted about 36% of the international retailers included in the study compiled by CB Richard Ellis. The vast contribution in this case is made by Prague, which appeared to be attractive for 36% of foreign retailers. Prague benefits mainly from a highly attractive retail environment, a heavy tourist inflow, and a number of increasingly affluent local citizens.
Moreover, the Czech Republic was the only Central and Eastern European (CEE) country, excluding Moscow, included on the list of top 20 countries worldwide that attract international retailers.
About 32% of international retailers are present in Poland, the second country in this respect in the CEE region. With 28% of international retailers present in each country, Hungary and Romania take places 30 and 31, respectively, in the global ranking of the countries that attract international retailers the most.
Slovakia appeared to be the least attractive market for foreign retailers in the CEE region. The country only took the 41^st position on the list of the most attractive retail destinations in the world, with 21% of international retailers present in the country.
From all of the CEE cities analysed in the study, only the capital of the Czech Republic was mentioned within the top 10 cities in Europe in terms of the number of foreign retailers present in a given city. Prague took 8^th position in the ranking and came before Munich and Hamburg. On the other hand, it gave up ranking on the list to such cities as: London, Paris, Moscow, Madrid, Milan, Berlin and Barcelona. By way of example, the first in the ranking, London, attracted about 56% of international retailers.





Romania saw the highest number of new entrances within the CEE in 2009
When one considers new entrances to a given market, rather than the actual number of international retailers, the positions of particular CEE countries were quite different from the ones above.
In 2009 Romania was the most popular destination for international retailers to enter within the whole CEE region. Over the period, nine foreign retailers set up their businesses in the country, which gave it the second position in the world in this respect. What is more, Romania also saw the opening of three new malls in 2009.
Romania was followed by Slovakia which, with seven new entrances in 2009, took the 11^th position in the global ranking.

Shopping centres favour foreign investors
Within the CEE region, Romania is planning the greatest number of new openings during 2010. Over the period it will add at least three new shopping centres. These are Gold Plaza in Baia Mare, Polus Center in Constanta and EuroMall Galati.
In addition, the construction of two other projects is expected to commence by the end of 2010.
In Slovakia the Aupark shopping centre opened in late April of 2010. Another shopping mall, Arkadia, is soon to be opened in Prievidza. In August 2010 the construction of one of the largest projects in central Slovakia is scheduled to begin in downtown Banska Bystrica. The project’s first phase is to be completed in November 2011.
Also in Poland a couple of new investments in the modern retail space are scheduled for the next few years: Galeria Widzewska in Lodz and CH Bem in Zambrow (2010), Focus Mall Jelenia Gora and Galeria MM in Poznan (2011), Galeria Warminska in Olsztyn,Galeria Veneda in Lomza (2012).
New shopping mall construction will lead to retailers appearing in certain CEE countries for the first time. This could create new and different rankings amonst these countries this time next year.

Paulina Burzawa
Business Editor
PMR Publications