EX DING BORDERS the Fashion Sector in the CEE-14 Countries
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EX DING BORDERS The fashion sector in the CEE-14 countries NOVEMBER 2018 CONTENTS Helsinki Oslo St. Petersburg 1. Introduction 3 Tyumen Stockholm Tallinn 2. General data 4 ESTONIA Yekaterinburg Moscow Riga 3. Retail sales 5 LATVIA Copenhagen Kazan LITHUANIA 4. Retail market 6 Dublin Vilnius Minsk 5. Main fashion streets 7 BELARUS London Amsterdam Hamburg Berlin 6. Fashion anchors 8 POLAND Warsaw Kiev Brussels 7. Selected fashion debuts 2016-2019* 9 Luxembourg Prague UKRAINE Frankfurt CZECHIA Paris 9. Contacts 10 SLOVAKIA Munich Vienna Bratislava Chisinau Bern Budapest HUNGARY Lublana Zagreb ROMANIA Milan * forecast CROATIA Bucharest Monaco Sarajevo Belgrade SERBIA Soa BULGARIA Madrid Rome Lisbon Skopje Istanbul Tirana ALBANIA Athens 2 EXCEEDING BORDERS | Colliers International INTRODUCTION AUTHORS Mark Robinson CEE | Research Specialist Helsinki Mob +420 777 532 072 Oslo St. Petersburg Tyumen [email protected] Stockholm Tallinn ESTONIA Welcome to our Yekaterinburgsecond annual pan-CEE retail Sales via e-commerce channels are very Moscow sector publication. This year, we examine much alive in the region but not yet large Riga Dominika Jędrak LATVIA Kazan Poland | Director Copenhagen the fashion sector across 14 CEE markets. enough to extinguish demand via traditional LITHUANIA Research and Consultancy Services Dublin Vilnius As disposable incomes climb continuously and omnichannel retail routes, at least Minsk Mob +48 666 819 242 towards EU average levels, purchases in the short to medium term. As well [email protected] BELARUS London Amsterdam Hamburg Berlin of fashion apparel and accessories become as the growth potential, we examine POLAND Warsaw Kiev ever more important as a driver of consumer the modern Shopping Centers marketplace Brussels spending. Fast recent-cycle GDP growth, across the CEE-14 countries. And we take Katarzyna Michnikowska Luxembourg Prague UKRAINE Poland | Associate Director Frankfurt CZECHIA Paris low unemployment and wage hikes all add a look at the main retail players in the sector Research and Consultancy Services SLOVAKIA Munich Vienna Bratislava up to booming conditions for fashion in CEE and the fashion debuts that have made Mob +48 607 559 587 Chisinau [email protected] Bern Budapest presently. a splash in recent years. HUNGARY Lublana Zagreb ROMANIA Milan CROATIA Bucharest Monaco Sarajevo Belgrade SERBIA Soa BULGARIA Madrid Rome Lisbon Skopje Istanbul Tirana ALBANIA Athens EXCEEDING BORDERS | Colliers International 3 Tallinn ESTONIA 1 1.32 2 1 ESTONIA 3 4.9 4 5.8 5 3.4 GENERAL DATA 6 23,400 Riga LATVIA LATVIA 1 1.95 2 1 COUNTRY LITHUANIA LITHUANIA 3 4.5 1 2.82 4 8.7 1 Population (M) 2 4 Vilnius 5 2.0 3 3.9 6 22,300 2 No. of cities over 100,000 inhabitants 4 7.1 Minsk 5 3.7 3 GDP growth 2017 (%) 6 24,700 BELARUS BELARUS 4 Unemployment 2017 (%) 1 9.50 POLAND 2 15 POLAND 3 2.4 5 CPI 2017 (%) 1 38.43 4 0.5 2 40 5 6.0 6 Average household personal disposable income US$ (2017) 3 4.6 Warsaw 6 8,200 4 6.6 5 2.0 Kiev 6 21,300 14 COUNTRIES UKRAINE 1 42.48 Prague UKRAINE CZECHIA 2 37 PEOPLE 1 3 2.2 163M 10.58 CZECHIA 2 6 4 8.5 SLOVAKIA 3 4.5 5 13.7 CITIES OVER 100,000 INHABITANTS 1 5.45 157 4 2.9 6 4,400 SLOVAKIA 2 2 5 2.5 Bratislava 3 3.2 6 22,600 4 5.9 5 1.3 6 30.100 Budapest ROMANIA HUNGARY HUNGARY 1 19.76 1 9.80 2 25 Zagreb 2 8 3 6.9 3 4.2 4 4.9 ROMANIA CROATIA 4 4.2 5 1.3 CROATIA 5 2.3 6 20,300 1 4.19 Bucharest 6 16,800 2 4 Belgrade 3 2.8 4 12.1 BULGARIA 5 1.2 1 7.10 SERBIA 6 22,400 2 6 So a 3 3.6 4 7.1 SERBIA BULGARIA 5 2.8 1 7.06 ALBANIA 6 13,500 2 5 1 2.87 3 4.8 2 3 4 14.7 3 3.8 Tirana 5 1.9 4 13.9 ALBANIA 6 11,800 5 2.0 6 14,200 4 EXCEEDING BORDERS | Colliers International Source: Eurostat, Oxford Economics Athens RETAIL SALES RETAIL SALES GROWTH 2017 (%) 10.9 12 10 7.4 8 6.4 5.8 5.9 5.5 6 4.6 4.5 4.3 4.0 3.9 3.6 3.4 4 2 1.7 0 Latvia Poland Estonia Belarus Ukraine Serbia Croatia Albania Czechia Slovakia Lithuania Hungary Bulgaria Romania Source: Oxford Economics Fashion sector as % of ecommerce sales, 2017 (source: Sta�sta) % OF E-COMMERCE SALES IN TOTAL RETAIL SALES 2017 FASHION SECTOR AS % OF E-COMMERCE SALES 2017 18 16 45 40.1 37.6 14 40 33.9 12 35 31.6 30 26.5 25.3 10 25 8 5.6 20 24 5.1 4.9 4.9 6 4.9 4.6 15 20.2 17.2 4 2.8 10 2 3.3 5 10.7 3.5 3.1 2.1 2 0 0 Latvia Poland Latvia Serbia Poland Estonia Serbia Croatia Czechia Slovakia Estonia Croatia Czechia Slovakia Lithuania Hungary Bulgaria Romania Lithuania Hungary Bulgaria Romania Source: Statista, data for Belarus, Ukraine and Albania not available Source: Statista, data for Belarus, Ukraine and Albania not available EXCEEDING BORDERS | Colliers International 5 Prime rent for 100-150 m2 unit EUR/m2/month (fashion sector) ESTIMATED PRIME RENT FOR 100-150 M2 UNIT RETAIL MARKET EUR/M2/MONTH (FASHION SECTOR) 49 0.8 160 135 ESTONIA 140 NO. OF SHOPPING 120 100 CENTRES* 28 100 120 LATVIA 80 80 70 0.5 65 65 60 TOTAL SHOPPING 60 CENTRES LITHUANIA 60 35 40 50 STOCK (MILLION M2) 45 40 35 40 BELARUS 20 0.9 0 185 Latvia Serbia POLAND 2.3 Poland Czechia Slovakia Lithuania Estonia Belarus Ukraine Hungary Bulgaria Romania Croatia Albania 500 ESTIMATED AVERAGE MONTHLY TURNOVER 11.8 EUR/M2 IN PRIME SHOPPING CENTRE 2 150 (ANCHORS, OVER 1,000 M , FASHION SECTOR) CZECHIA 500 UKRAINE 1.3 274 400 97 300 3.5 SLOVAKIA 1.6 200 HUNGARY 100 72 ROMANIA 0 1.1 133 Latvia Serbia 3.7 Poland Czechia Slovakia Lithuania Estonia Belarus Ukraine Hungary Bulgaria Romania Croatia Albania SERBIA CROATIA 26 ESTIMATED500 AVERAGE MONTHLY VISITS IN PRIME SHOPPING CENTRE (MLN) 1.2 13 400 BULGARIA 300 0.3 30 200 * modern retail scheme 100 2 0.9 over 5,000 m GLA, ALBANIA 1.7 1.3 1 0.7 1.2 1.3 1.1 1.3 1.6 0.8 1.3 0.9 1 0.8 0 over 10 units, centrally managed 10 Latvia Serbia 0.2 Poland Czechia Slovakia Lithuania Estonia Belarus Ukraine Hungary Bulgaria Romania Croatia Albania 6 EXCEEDING BORDERS | Colliers International Source: Colliers International Source: Colliers International MAIN FASHION STREETS We are present with the Sizeer concept in 8 foreign markets, i.e.: Lithuania, Latvia, Estonia, Germany, ESTONIA the Czech Republic, Slovakia, Hungary and Romania. We are observing big differences in business standards Viru, Rotermanni, Tallinn as well as in consumer behaviors. Each of this market is different with respect to purchasing power, but also customers’ needs and their approach to products, LATVIA which sport-fashion category offers. Terbatas, Elizabetes, Kalku, Riga We have also noticed a large differentiation of competitors and consumers’ specific approach for e-commerce shopping. The CEE market is unitary, POLAND LITHUANIA and the retail industry is dominated by shopping centers. The only market in Central and Eastern Europe, Mokotowska, Warsaw SLOVAKIA Didzioji, Gedimino, Vilnius where the high street segment plays the main role, is the capital of the Czech Republic. All this requires Obchodná, Bratislava a flexible approach from us, both in the area of shaping and building the offer, as well as in the approach CZECHIA BELARUS of choosing the location and service offered to the customer. Na příkopě, Pařižská, Prague UKRAINE Komsomolskaya, Minsk Khreshchatyk, Kiev Rafał Pierzchniak, Sizeer SERBIA HUNGARY Knez Mihailova, Belgrade Váci utca, Andrássy út, Fashion street, Budapest CROATIA BULGARIA ROMANIA Ilica, Zagreb Vitosha Boulevard, Sofia Calea Victoriei, Bucharest ALBANIA Myslym Shyri, Sami Frasheri, Abdyl Frasheri, Vaso Pasha, Tirana EXCEEDING BORDERS | Colliers International 7 FASHION ANCHORS POLAND CZECHIA SLOVAKIA LATVIA LITHUANIA ESTONIA BELARUS UKRAINE HUNGARY BULGARIA ROMANIA SERBIA CROATIA ALBANIA H&M 97 50 24 7 9 11 0 2 20 20 55 13 16 0 LPP 990 80 58 23 23 32 6 96 12 17 35 1 19 0 Inditex 272 24 16 * * * 11 64 38 30 128 14 39 8 New Yorker 94 53 42 3 8 9 0 8 17 11 37 27 24 1 C&A 63 42 16 0 0 0 0 0 20 0 40 15 20 0 LC Waikiki 4 0 0 0 0 0 14 28 0 16 31 23 0 9 Apranga 0 0 0 45* 110* 29* 0 0 0 0 0 0 0 0 P&C 10 2 3 1 2 0 0 0 1 2 6 0 3 0 Van Graaf 10 1 0 1 0 0 0 0 2 0 0 0 0 0 TK Maxx 43 0 0 0 0 0 0 0 0 0 0 0 0 0 * Inditex is represented by Apranga Group in Lithuania, Latvia and Estonia Total 1583 252 159 35 42 52 31 198 110 96 332 93 121 18 Source: Colliers International 8 EXCEEDING BORDERS | Colliers International Tallinn 2016 CCC 2017 Suitsupply ESTONIA 2018 Piazza Italia, Dixie, Intimissimi, Yamamay 2016 Intimissimi, Caldezonia, SELECTED COS 2019* Matinique 2017 River Island, Steve Riga Madden, Oysho LATVIA FASHION 2019* Deichmann, Van Graaf LITHUANIA DEBUTS 2016 Calzedonia, Intimissimi 2017 Inditex, LPP Vilnius 2017 Orsay, 4F 2019* New Yorker IN 2016-2019* 2018 Oysho, Maje, Sandro, Superdry Minsk 2016 Forever 21, Uterque, 2019* Van Graaf & Other Stories BELARUS 2017 Victoria's Secret, Freya, * forecast Sfera, Melon Fashion Group, Nissa, Newbie POLAND 2018 Bebe Warsaw 2019* Primark Kiev 2016 Sandro, Silvian Heach, Tezenis, Atos Lombardini, Falke, Hiltl, Ravin Jeans, Isabel Garcia, Converse 2016 Palmers Prague UKRAINE 2017 Scotch&Soda, Liu Jo, Saucony, 2017 Karl Lagerfeld, Philipp Plein, Falconeri, Super Dry, Under Armour, Celine, Hogan, Ermanno Scervino CZECHIA Van Laack, Baldessarini, Hanro, 2016 Forever 21, Karl Lagerfeld Hugo Boss, Gerry Weber, Lee Cooper 2018 Furla, Christian Louboutin, Valentino, Armani Exchange 2018 H&M SLOVAKIA Bratislava 2016 COS, Boggi, Lamidor 2016 Kazar, Max&Co.