CEE Retail MarketBeat Reports

CEE-6 RETAIL MARKET Q4 2024

• Retail parks drive regional development activity, with Poland leading at 530,000 sqm of new retail space—the highest since 2015—bringing total stock to 16.8 million sqm, Czech Republic seeing record-breaking retail park completions of 78,900 sqm (highest in 15 years), Romania delivering approximately 180,000 sqm, and Bulgaria completing 73,000 sqm with retail park stock climbing 13% year-on-year to 577,000 sqm.
  
  
• Secondary and tertiary cities become development focal points, with 65% of Poland's development pipeline targeting towns with populations below 50,000, reflecting a broader regional trend toward retail expansion in smaller markets where retail density remains below Western European averages.
  
  
• International retailers continue ambitious expansion plans, with 47 new brands entering Czech Republic, 26 in Poland, over 15 in Slovakia, and 13 in Hungary, including significant entrants like JD Sports, Primark, Half Price, and Foot Locker, underscoring the region's continued attractiveness for retail growth.
  
  
• Rental trends vary significantly across markets and formats, with Poland experiencing the most dramatic growth as prime shopping center rents surged by approximately 23% year-on-year, retail parks rising 22%, and high streets 17%, while the Czech Republic maintained stable prime rents at €225.00/sqm for high street premises and €142.00/sqm for shopping centers.
  
  
• Consumer behaviors continue reshaping retail landscapes, with e-commerce penetration stabilizing at higher-than-pre-pandemic levels, prompting landlords to emphasize experiential offerings and tenant mix diversification, with food & beverage, entertainment, and service-oriented concepts gaining prominence as footfall drivers, while value-oriented retailing increases market share in response to consumer price sensitivity.