CEE THE RETAIL NOVEMBER 2018

RETAIL

Real Estate for a changing world CONTENT INTRODUCTION

Robust growth of national WARSAW 4 economies, rise in employment, PRAGUE 6 growth of salaries and purchasing power, all these 8 WARSAW factors demonstrate that the BUDAPEST 10 CEE region has been flourishing P O L A N D for the last couple of years. CEE CUSTOMERS 12 PRAGUE he retail industry benefits massively from these positive C H Z E C economic trends. Tight labour markets and robust growth R E P U B L I C T of wages resulted in rising consumer confidence which spurred consumer spending. Over the last five years retail turn- over across the CEE countries has soared by over 20%, with BUDAPEST leading the group and recording a stellar increase by 36%. Although retail sales growth is expected to soften, it will In cooperation with Inquiry and Robertson. still remain healthier than in the Eurozone. O M A N H R Y R I U N G A A Another important socio-economic factor which clearly contrib- utes to extensive potential of the retail sector in the CEE region is BUCHAREST a rapid growth of the pool of middle-class shoppers. Aspirations of consumers have been steadily growing and now they are more demanding of products, services and brands than ever before. Although the selection of renowned, international brands in the region is good, there are still market gaps and opportunities for newcomers which remain untapped.

All these factors underpin the high potential of the region as a destination for retail expansion.

BNP Paribas Real Estate 3 POLAND DEVELOPMENT OF MODERN SHOPPING CENTRE STOCK3 WARSAW m² GLA POLAND 1,34m 2.6m €12,473 1,400,000 SELECTED RETAIL Population agglomeration Purchasing Power 1,200,000 1.7m population city1 (per capita / year)2 WARSAW 1,000,000 800,000 SCHEMES 15 is limited and operators have to wait for reasonable op- 600,000 With a circle of satellite towns and 13 intervening rural areas, Warsaw has portunities. Last year Hamleys, Newbie, Love Republic and 400,000 16 Zarina entered the newly opened Galeria Północna. A new a metropolitan area inhabited by nearly 200,000 medium–sized concept store by IKEA opened in Blue City, 10 20 18 2.6 million people which amasses more while Primark will come on stage next summer in a new 0 14 4

than 10% of the country’s purchasing power. shopping and leisure complex, Galeria Młociny. 2 0 2 0 1 2 0 2 0 3 2 0 4 2 0 5 2 0 6 2 0 7 2 0 8 2 0 9 2 0 1 2 0 1 2 0 1 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8

he per capita purchasing power has grown by over In the southern, western and north-eastern outskirts of 2 Warsaw operate three outlet centres. Two IKEA-driven re- 1.94m m Galeria Mokotów 6% since 2015 and today exceeds the country average 517 SELECTED MAJOR SHOPPING CENTRES 12 by 55%. The unemployment rate in Warsaw is at its tail parks of paramount importance (HOMEPARK Targówek 2 Density of shopping centre 1 T and HOMEPARK Janki) serve the north and the south stock (sq m of GLA / 1,000 NAME TYPE ADDRESS 17 lowest, whilst salaries have been on an upward trend for 1.34m m residents) – agglomeration3 Arkadia SC Jana Pawła II 82 the past several months. of the agglomeration respectively. Small, convenience Modern retail stock / 1 21 retail schemes have emerged in new residential clus- 3 Shopping centre stock (GLA) 2 Atrium Promenada SC Ostrobramska 75C 2 THE MARKET IN THE WARSAW AGGLOMERATION OF- ters in the suburbs as well as in the satellite towns of 15 Galeria Mokotów SC Wołoska 12 22 18 Warsaw in Łomianki, Piaseczno, Brwinów, Podkowa Leśna, FERS A DIVERSIFIED SELECTION OF FORMATS AND RE- 21 Wola Park SC Górczewska 124 TAILER POOL. At the end of Q3 2018, a volume of 1.9 mil- Pruszków and others. 3 22 Złote Tarasy SC Złota 59 6 lion sq m of GLA was recorded across all retail formats. 11 Shopping centres of various typology accumulate over Given the volume of retail space in the development 1.3 million sq m of GLA. Large shopping and leisure com- phase, the market will enlarge by a further 19,000 sq m plexes, such as Arkadia, Złote Tarasy and Galeria Mokotów in 2018 and by a further 105,000 sq m in 2019. Over the dominate the market and lead in terms of tenant mix, se- last 3 years, prime rents were on the rise and today has 15 lection of leisure and F&B facilities; implementing novelty peaked at €120 – 130 / sq m / month in the top shopping centres. Rental conditions in lower class schemes, partic- 2 factors into their offer, innovating and quickly responding HOMEPARK Janki ularly those purely hypermarket-driven schemes of older 160,000 m €110 – 130 to ever changing customer behaviour. Modern retail stock under Prime shopping centre generation, have been tightening since customers’ have construction (GLA)3 rents (sq m / month)3 SELECTED BeFree TEDI Owners of secondary but well established shopping cen- shifted towards more convenience retailing, predominant- 7 Zarina DEALZ 8 tres react strongly to toughening competition and un- ly in neighbourhood discount stores. NEWCOMERS Love Republic Fissman 19 dertake extensions and refurbishments in order to bol- Forever 21 Max Burgers FitOne ster their market position and increase the value of their The high capacity of the retail market is reflected in the low 1 Arkadia 12 Galeria Bemowo assets. Atrium Targówek, Atrium Reduta, Blue City and vacancy rate which has been oscillating around a healthy & Other Stories Newbie Miniso NUMBER OF SCHEMES 2 Atrium Promenada 13 Galeria Łomianki 3 Atrium Reduta 14 Galeria Młociny (UC) Centrum Janki are the most pronounced examples of ongo- 2% for the past several years. There are, however, clear Steve Madden Mi Store (Xiaomi) Bebe 5 45 4 Atrium Targówek 15 Galeria Mokotów ing changes. Wola Park, although currently suffering from disparities between locations, with a number of distressed 26% 15% Tezenis Sfera Yamamay Shopping 5 Auchan Piaseczno 16 Galeria Północna assets suffering from extremely limited tenant demand. Growth of private Uterqüe Centres 4 9 major road closures in the area, will benefit greatly from Retail sales growth in the Carpisa Menya Musashi 6 Blue City 17 Galeria Wileńska High street retailing is dominated by F&B facilities thus consumption in the Retail Parks the opening of a new metro line in the near future with country (over the course Max&Co E-obuwie Primark 7 Centrum Janki 18 M1 Marki premium and luxury brands are clustered in leading shop- of the last 5 years)4 country (over the course 3 a stop planned in front of the property. 4 Homla Blue Frog Papa Diego 8 Centrum Ursynów 19 HOMEPARK Janki ping centres such as Galeria Mokotów, Atrium Promenada, of the last 5 years) Outlet Centres Hamleys Papa John’s 9 Designer Outlet Warszawa 20 HOMEPARK Targówek Leading shopping centres are the most sought-after des- vitkAc and Klif. 10 Factory Annopol 21 Wola Park Tresspass Action tination for newcomers, however, the availability of space 1. National Statistical Office; 2. GfK; 3. BNP Paribas Real Estate; 4. Oxford Economics SC – shopping centre 11 Factory Ursus 22 Złote Tarasy

4 CEE the Retail | 2018 BNP Paribas Real Estate 5 CZECH REPUBLIC DEVELOPMENT OF MODERN SHOPPING CENTRE STOCK3 PRAGUE m² GLA CZECH REPUBLIC 1,200,000 SELECTED RETAIL 2.6m €10,908 967,000 Population agglomeration Purchasing Power 1,000,000 1.3m population city1 (per capita / year)2 PRAGUE 800,000 SCHEMES 600,000 The Prague retail market is benefitting brand Hispanitas, and the outdoor brand 400,000 from very strong consumer demand Trespass. In Centrum Cerny Most, a re- nowned Chinese electronics operator 200,000 10 fundamentals fuelled by the positive opened its first mono-brand Mi Store. 12 situation in the labour market with 0

unemployment oscillating around 2%, PRIME HIGH STREET IN PRAGUE IS STILL 2 0 2 0 1 2 0 2 0 3 2 0 4 2 0 5 2 0 6 2 0 7 2 0 8 2 0 9 2 0 1 2 0 1 2 0 1 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 PERFORMING VERY WELL, SUPPORT- wages rising strongly and increasing ED BY THE GROWING NUMBER OF IN- 2 purchasing power. COMING TOURISTS. While mass market 1.1m m 345 SELECTED MAJOR SHOPPING CENTRES 3 brands focus on Na Příkopě Street, the 2 Density of shopping centre rague is the seventh richest region in the EU with luxury prime spot at Pařížská has seen 0.9m m stock (sq m of GLA / 1,000 NAME TYPE ADDRESS 11 residents) – agglomeration3 Atrium Flóra SC Vinohradská 151 182% of GDP per capita above the EU average. among others new arrivals last year Modern retail stock / 2 8 3 2 P Prague Purchasing Power per capita exceeds the such as Philip Plein, Hogan or Brunello Shopping centre stock (GLA) 4 Centrum Chodov SC Roztylská 2321/19 5 Czech average by 30%. Cuccinelli, followed by Valentino and 8 Myslbek ICA Na Příkopě 1096/19 – 21 9 Furla in 2018. Vapiano restaurant entered 10 OC Letňany SC Veselská 663 NEW DEVELOPMENT IN PRAGUE IS LIMITED and the the Prague market last year and since Palladium OC Nám. Republiky 1 last major new openings include Prague The Style Outlet then has expanded to three locations in 11 at the border of Prague and the extension of Galerie Myslbek and Quadrio in the city centre 7 1 Butovice in 2018. In 2017, the extension and refurbish- and most recently Centrum Chodov. 6 ment of Centrum Chodov was the landmark project of 8 the year in the country. The majority of construction ac- A LIMITED SUPPLY AND STRONG DE- tivity will deal with refurbishment and remodelling of MAND ARE REFLECTED IN AN INCREASED 4 existing centres going forward. Recently, the remodelling PRESSURE ON PRIME RENTS BOTH IN 2 of Centrum Letňany was completed. Currently ongoing SHOPPING CENTRES AND IN THE HIGH 90,500 m €120 – 140 Modern retail stock under Prime shopping centre remodelling includes, amongst others Galerie Fénix, STREET. Prime rents in Prague high construction (GLA)3 rents (sq m / month)3 SELECTED Hispanitas Huawei Metropole Zličín and Palladium. The expansion and up- street continue rising and are forecast Trespass IQOS grade of the food & beverage components in shopping to remain on an upward trajectory con- Karl Lagerfeld Okaïdi centres is in the forefront of most remodelling projects sidering its limited expansion poten- NEWCOMERS in response to changing customer needs and in line with tial. Prime rents are already achieving Philip Plein Shoe4you Boux Avenue maximising and improving shoppers’ experience. €210 – 220 / sq m / month. Similarly, prime Furla Kazar Thomas Sabo NUMBER OF SCHEMES Myslbek shopping centre rents are under upward Hogan Palmers Daniel Wellington 25 RETAILER DEMAND REMAINS STRONG FOR THE BEST pressure. Prime shopping centre rents 21% 15% Brunello Cuccinelli Yamamay Jo Malone Shopping PERFORMING SHOPPING CENTRES AND HIGH STREETS. for benchmark 100 sq m units remained Growth of private Valentino Oysho Yankee Candle Centres 2 Retail sales growth in the Retail Parks 1 Arkády Pankrác 7 Metropole Zličín Following the opening of Prague The Style Outlet, a num- consumption in the stable in Q2 2018 at €120 – 140 sq m per country (over the course Armani Exchange Forever 21 Joleo 2 Atrium Flóra 8 Myslbek 4 2 ber of newcomers have entered the Czech retail mar- month, but there is still space for a fur- of the last 5 years) country (over the course 4 Vapiano John Reed Andiamo Outlet Centres 3 Centrum Černý Most 9 Nový Smíchov ket such as the Italian clothing brands Gattinoni Roma, of the last 5 years) ther increase. Pizza Hut Zara Home MI Store (Xiaomi) 4 Centrum Chodov 10 OC Letňany (UC) Marina Militare, Massimo Rebecchi and Frankie Morello, Marina Milliaire Wolford 5 Fashion Arena 11 Palladium as well as Italian shoe retailer Ixos, a Spanish footwear 1. National Statistical Office; 2. GfK; 3. BNP Paribas Real Estate; 4. Oxford Economics SC – shopping centre; ICA – inner city aracade; OC – outlet centre; UC – under construction 6 HOMEPARK Zličín 12 Prague The Style Outlet

6 CEE the Retail | 2018 BNP Paribas Real Estate 7 ROMANIA DEVELOPMENT OF MODERN SHOPPING CENTRE STOCK3 BUCHAREST m² GLA ROMANIA 800,000 SELECTED RETAIL 2.5m €5,698 684,500 Population agglomeration Purchasing Power 700,000 BUCHAREST 2.1m population city1 (per capita / year)2 600,000 500,000 SCHEMES 1 400,000 their retail and entertainment amenities With a solid 6.9% GDP growth and 300,000 by adding new components. a double digit retail sales increase in 200,000 2 2017, Romania is the retail market which THE LEADING SHOPPING SCHEMES IN 100,000 offers exciting development prospects. BUCHAREST ARE THE FIRST TARGET 0 FOR INTERNATIONAL TENANTS SEEK- 2 0 4 2 0 5 2 0 6 2 0 7 2 0 8 2 0 9 2 0 1 2 0 1 2 0 1 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 rivate consumption has been significantly strong ING OPPORTUNITIES FOR MARKET EN- during the past five years, with an average growth of TRY. A number of major retailers such 2 13 5.7% y-o-y which peaked in 2017 recording a remark- as Pinko, Tumi, Sizeer, Obsentum, Karaca, m m P 1.2 320 SELECTED MAJOR SHOPPING CENTRES AFI Cotroceni able 9.4%. It is expected that the number of middle-class Forever 21, Max&Co., COS and Hugo Boss 2 Density of shopping centre households will significantly increase by 2022 providing (re-entry to the high street) have entered 0.8m m stock (sq m of GLA / 1,000 NAME TYPE ADDRESS residents) – agglomeration3 AFI Cotroceni SC Bd. General Vasile Milea 4 a strong base for mass market brands. Bucharest can cur- the city during the last few years, while Modern retail stock / 1 rently offer a sizable market for retailers in all price seg- others are exploring the market for future Shopping centre stock (GLA)3 2 Băneasa Shopping City SC Șoseaua București-Ploiești 42D ments, even in the premium and luxury products category. opportunities. 9 Mega Mall SC Bd. Pierre de Coubertin 3 – 5 Bucharest with its wider metropolitan area is populated by 11 ParkLake Shopping SC L. Rebreanu 4 approx. 2.3 million residents having purchasing power by High street retailing is clustered along Center 10 9 Magheru Bd., Calea Victoriei and Calea 35% higher than the national average. The city accounts 14 SC Calea Văcărești no. 391 5 4 for around 25% of retail sales recorded in Romania. Dorobanti as well as in the reviving histor- 12 1 15 ical city center, however it’s importance is 11 AT THE END OF H1 2018, THE MODERN RETAIL MARKET rather minor and limited to F&B facilities, 3 7 IN BUCHAREST STOOD AT APPROX. 1.2 MILLION SQ M, convenience retailing and service options. 8 OF WHICH NEARLY 60% CAN BE FOUND IN 15 SHOP- PING CENTRES. Dominant shopping and leisure malls The retail vacancy in Bucharest remains 2 very low, with leading shopping centres 62,500 m €55 – 70 such as Baneasa Shopping City, AFI Palace Cotroceni, Modern retail stock under Prime shopping centre 14 Sun Plaza, Mega Mall and ParkLake Shopping Centre being almost fully occupied. Strong inter- construction (GLA)3 rents (sq m / month)3 SELECTED Forever 21 (2016) benefit greatly from strong retailer demand and high est from retailers has led to a shortage Max&Co. (2016) rental levels. Last year AFI Palace Cotroceni bolstered of available retail space and the leading COS (2016) its market position and expanded by 8,000 sq m GLA malls have a waiting list for new entrants. NEWCOMERS reaching around 90,000 sq m. In the first half of the cur- Pinko Chopard (2016) 6 Prime shopping centre rents remained rent year, Sun Plaza improved its fashion offer through Tumi Uterque NUMBER OF SCHEMES relatively stable and range approx. remodeling 10,000 sq m formerly occupied by a furni- Sizeer Under Armour €65 – 75 / sq m / month, however an up- 21 1 AFI Cotroceni 9 Mega Mall ture store. At present, construction activity is limited, 46% 35% Obsentum Longchamp 10 Shopping 2 Băneasa Shopping City 10 Militari Shopping Center ward pressure has been observed recently. Growth of private Retail Parks with only IKEA Pallady (37,000 sq m), the second store Retail sales growth in the Karaca Centres 3 Bucuresti Mall 11 ParkLake Shopping Center consumption in the of this operator in Bucharest and in the country, almost country (over the course Hugu Boss (re-entry) 4 Cocor Store 12 Although the ecommerce sector saw 4 country (over the course ready to open. In the short–term, future a new project of the last 5 years) 1 5 Fashion House Outlet 13 Promenada Mall a huge growth of volume in 2017 (up by of the last 5 years)4 Momax is planned for the Floreasca district, while a number of Outlet Centres over 20%), stationery retailing has main- Tag Heurer 6 Grand Arena Mall 14 Sun Plaza schemes (e.g. Colosseum Retail Park, Promenada Mall 7 Iris Shopping Center 15 tained its share in the total retail sales. La Perla and Beaneasa Shopping City) are expected to enlarge 1. National Statistical Office; 2. GfK; 3. BNP Paribas Real Estate; 4. Oxford Economics SC – shopping centre 8 Liberty Center

8 CEE the Retail | 2018 BNP Paribas Real Estate 9 HUNGARY DEVELOPMENT OF MODERN SHOPPING CENTRE STOCK3 BUDAPEST m² GLA HUNGARY 1,000,000 SELECTED RETAIL 2.5m €7,650 819,500 Population agglomeration Purchasing Power 800,000 BUDAPEST 1.7m population city1 (per capita / year)2 600,000 SCHEMES 13 continuously strengthening macroeconomic conditions Retail sales have been persistently 400,000 growing since 2014 and the volume in the and lack of new supply, landlords were able to repo- sition their shopping centres and realign their tenant 200,000 Budapest area is now above the country mix. Several old-generation shopping centres went un- average. In 2017, annual retail sales in der major refurbishment and rebranding. The latest ex- 0 14

Budapest grew by 8% y-o-y. ample, SHOPMARK (formerlyknown as Europark), with 2 0 2 0 1 2 0 2 0 3 2 0 4 2 0 5 2 0 6 2 0 7 2 0 8 2 0 9 2 0 1 2 0 1 2 0 1 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 8 a brand new interior design image and renewed tenant he growth was boosted by two-digit real wage mix opened in October 2018. 2 growth, rising consumer confidence and improving 1m m 328 SELECTED MAJOR SHOPPING CENTRES MOM Park labour market trends. One fifth of the Hungarian TENANT DEMAND FOR PRIME HIGH STREET AND DOM- 2 Density of shopping centre T INANT SHOPPING CENTRES REMAINS STRONG AND stock (sq m of GLA / 1,000 NAME TYPE ADDRESS population lives in Budapest and its catchment area re- 0.82m m 12 18 residents) – agglomeration3 Aréna MALL SC Kerepesi út 9. sulting in the purchasing power in the Budapest area be- RENTS ARE UNDER UPWARD PRESSURE. Numerous Modern retail stock / 2 17 new international brands entered the Hungarian mar- Shopping centre stock (GLA)3 10 KÖKI Terminál SC Vak Bottyán u. 75. A – C. ing twice the country average. 2 3 ket, representing both the mass market and luxury seg- 12 Mamut I – II SC Lövőház u. 2 – 6. 13 ments, such as Jo Malone, Joop!, Marina Rinaldi, Inglot, IN TERMS OF SIZE, THE MODERN RETAIL MARKET HAS 13 MOM Park SC Alkotás u. 53. 4 6 REMAINED RELATIVELY UNCHANGED IN THE LAST FIVE Fjällräven, Storck, Lindt&Sprüngli, Footshop and Sizeer. 18 WestEnd City Center SC Váci út 1 – 3. YEARS. Currently the retail stock in Budapest oscillates Brands which are already established on the market 1 11 around 996,000 sq m. The “Plaza Stop” act effective started to open new stores and expand their portfolios. 10 since 1st January 2012 still means an artificial barrier 9 16 for new retail developments especially for shopping AS A RESULT OF A VERY LIMITED NEW SUPPLY, WELL-LO- centres and discount stores. Based on the rules of the CATED SHOPPING CENTRES ARE FULLY OCCUPIED, act, no retail developments over 300 sq m can be built WHICH MAKES IT DIFFICULT FOR NEW BRANDS TO EN- 2 or re-built without special permission from the Ministry TER THE HUNGARIAN MARKET. Over the course of the last few years, the strongest occupational activity has 54,200 m €60 – 90 for National Economy. Since the ban was implement- Modern retail stock under Prime shopping centre 15 been noted in the sector of high street retailing which 7 ed, only 3 shopping centre schemes have received ex- construction (GLA)3 rents (sq m / month)3 SELECTED Storck Zara Home strongly benefits from the inflow of tourists. Currently it emption: Etele Plaza, Aquincum Center and MUNDO Cinema Pink H&M Home is really challenging to find available shop units on the 5 Shopping Centre. At present, only one project is under NEWCOMERS Bubbles Laundry construction; Etele Plaza will be completed in Q3 2020 three most sought-after high streets of Budapest. The Max&Co Services with 54,200 sq m of GLA. Once open, Etele Plaza will be Fashion Street, Andrássy Avenue and Vaci Street vary Coccinelle Mömax NUMBER OF SCHEMES the third largest shopping centre in Budapest. widely in terms of positioning, brand selection and pro- file and pricing of the offer, but all of them are perform- Pepco Möbelix 1 Allee Shopping Centre 10 KÖKI Terminál 30 2 Aréna MALL 11 Lurdy Ház The next project is likely to be Aquincum Center with ing outstandingly well. 25% 16% Pupa Milano Musette Shopping 8 3 Árkád 1 – 2 12 Mamut I – II Growth of private Centres Retail Parks an opening initially scheduled for 2021, however, the Retail sales growth in the Michael Kors Michal Negrin Bálna Budapest MOM Park consumption in the 4 13 developer is facing permitting issues. Besides these country (over the course Fjällräven Gino Rossi 5 Campona 14 Polus Center 4 country (over the course shopping centres, the retail park stock of Budapest is of the last 5 years) 1 of the last 5 years)4 Nanuska Palmers Outlet Centres 6 Corvin Plaza 15 Savoya Park going to expand with two more schemes adjacent to Lindt & Sprüngli NUBU 7 Csepel Plaza 16 SHOPMARK Auchan in Soroksár and Auchan in Solymár. Due to the 8 Duna Plaza 17 Sugar Inglot Cadenzza 1. National Statistical Office; 2. GfK; 3. BNP Paribas Real Estate; 4. Oxford Economics SC – shopping centre; UC – under construction 9 Etele Plaza (UC) 18 WestEnd City Center

10 CEE the Retail | 2018 BNP Paribas Real Estate 11 CEE CUSTOMERS WHAT MAKES THE DIFFERENCE? All countries in the region share the common history of being in the same communist bloc after WWII but in fact, the region is as diverse as it gets, even if they share some common values, like family and health. Each country has a unique consumer market, with different attitudes and aspirations. The only common feature is that household incomes are lower than in the Western Europe, so shoppers have a special relationship with economy brands such as H&M. However, this is the only fashion brand that is present among the TOP5 in all markets – each country is different in this respect.

POLAND CZECH REPUBLIC ROMANIA HUNGARY Poland is by far the largest country in the The Czech market is the most affluent among Romania is one of the least affluent markets Hungarian consumers are very price- region and the retail market is very strong. the four countries presented here. However, in Eastern Europe, with the average monthly sensitive, with the majority of the population Polish consumers are fashion-conscious and Czech consumers do not pay much attention wage at the level of ca. €963 gross. Therefore, stating that price is more important than buy brands they already know, which makes to fashion and spend less than 4% of their Romanians are particularly receptive to sales quality. Their favourite pastime is watching life hard for new entrants. The top brands in household budgets on clothing and footwear. and promotions and love brands from the TV and browsing the internet but they are Poland are Reserved (local), CCC (local), H&M As Czechs love to spend time outdoors, their economy segment, such as Pepco. Despite also savvy shoppers. Having experienced and Zara; the discount chain Pepco is also favourite brands include sports brands such low incomes, the retail market in Romania a period of uncertainty, Hungarians now see very popular. Shopping is one of the favourite as Adidas and Puma. The Czech market is is booming, with year-on-year growth rate their purchase power rising. The economy pastimes; as the spending power is rapidly very close to Germany that is why German close to 10%. Romanians spend more than is on the growth path again, with retail increasing, even the recent ban on Sunday brands C&A and Orsay are also very popular 7% of their budgets on clothing and footwear sales growing 8% in annual terms. Increased trade has not slowed shoppers’ enthusiasm. here. In addition, the Czech Republic has a but economize on restaurants, preferring spending is due to a strong growth of relatively high share of online sales, which family gatherings at home to eating out. consumer confidence: last year, the Hungarian is over 7% of the total retail market. Consumer Confidence Index has surpassed the all-time high pre-crisis level by 5 points.

12 CEE the Retail | 2018 BNP ParibasMyslbek, Real Prague, Estate Czech Republic13 One of the leading international real estate providers, offers its clients a comprehensive range of services that cover the entire real estate lifecycle: property development, transaction, consulting, valuation, property management and investment management. Our 5,100 team members, active in 36 countries, provide you with specialist knowledge of their markets and implement global real CONTACTS estate strategies using local solutions.

BNP Paribas Real Estate is part of the BNP Paribas Group BNP Paribas Real Estate in CEE region provides the following services: Capital Markets, Property KRS 0000123245 Sąd Rejonowy dla M. St. Warszawy, XII Management, Letting Advisory and Valuation for all commercial asset class whether logistic, office or Marcin Klammer Erik Drukker retail. All departments are furthermore complemented by a Research Department providing clients Wydział Gospodarczy KRS Chief Executive Officer Managing Director with ad hoc reports and data, enabling suitable long-term business decisions. CEE Agency & Valuation CEE Regon 011890235, NIP 527-11-37-593 [email protected] [email protected] Capital: 14 200 000 PLN More information: www.realestate.bnpparibas.com

Olga Melihov Stewart Thomson, MRICS Country Head Country Head POLAND CZECH REPUBLIC ROMANIA HUNGARY Romania Czech Republic al. Jana Pawła II 25 Ovocný trh 8 Banul Antonache Street n°40 – 44 Váci út 117 – 119 A/2 [email protected] [email protected] 00-854 Warsaw 110 00 Prague 1 Bucharest 011665 H – 1138 Budapest Tel.: +48 22 653 44 00 Tel.: +420 224 835 000 Tel.: +40 21 312 7000 Tel.: + 36 1 688 4400 Henrik Favari, MRICS Robert Tilki, MRICS www.realestate.bnpparibas.pl www.realestate.bnpparibas.cz www.realestate.bnpparibas.com.ro www.realestate.bnpparibas.hu Chief Executive Officer Managing Director, Robertson Hungary Hungary (an alliance member) [email protected] [email protected]

Fabrice Paumelle Marta Błaszczak Head of Retail Consultant CEE Retail Active Management [email protected] [email protected] Inquiry sp. z o.o. Inquiry offers project management and fieldwork services for research projects Contact person: Agnieszka Górnicka across CEE countries including Poland, Russia, Czech Republic, Slovakia, Ukraine, Natasa Mika Anna Pływacz [email protected] Bulgaria, Romania, Hungary, the Baltic states and other countries of the Head of Retail Senior Consultant +48 601 406 624 region. For your research projects in Eastern Europe, we provide you with local Leasing Department Retail Leasing Department www.inquirymarketresearch.com market insights to support your research project design and management. [email protected] [email protected]

AUTHOR Robertson Hungary Kft. Patrycja Dzikowska [email protected] Head of Research & Consultancy (36-1) 327 2050 CEE www.robertson.hu [email protected]

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Real Estate for a changing world