The retail sector in the Czech Republic has shown signs of recovery in the first quarter of 2024 after facing challenges due to the pandemic and economic downturn in the previous year. According to a report by CBRE, a leading company in retail space management and leasing, the regional shopping centers saw a 4% increase in footfall compared to the previous year. This growth is in line with the overall trend in Europe, indicating a cautious optimism in the retail industry.
One of the key factors contributing to the positive outlook is the 5% year-on-year increase in turnover recorded by the shopping centers. This growth was primarily driven by sectors such as services, gastronomy, and specialized retail. The service sector, in particular, saw a remarkable 21% improvement in performance, with travel agencies, nail studios, and barbershops leading the way. The gastronomy sector also experienced a significant boost, with a 12% increase in turnover compared to the previous year.
However, not all sectors saw growth, as three out of nine sectors experienced a decline in turnover. The fashion sector, especially women’s clothing, faced challenges with a 4% decline in turnover, while sports goods and household furniture also saw a decrease in sales.
Despite the overall positive trend, the report also highlighted some areas of concern. The average rental prices increased by 7.9%, which, although a significant rise, is still considered „sub-inflationary.“ Retailers are facing pressure from rising costs and are cautious about the slow pace of sales recovery.
The report also analyzed the occupancy rates of regional shopping centers, which slightly decreased to 3.9%. While this figure is lower than pre-pandemic levels, it indicates a healthy environment for retailers with a wide range of stores and services for customers.
Looking ahead, the report suggests that the retail sector is poised for further growth. Retailers are optimistic about expanding their store networks, with a focus on regional shopping centers and retail parks. The report also highlighted the growing popularity of transport hubs as potential locations for retail expansion.
Overall, the data from the report paints a positive picture of the retail sector in the Czech Republic, with signs of recovery and growth in various segments. Retailers are adapting to the changing market dynamics and are optimistic about the future, despite some challenges that lie ahead.
