Location is everything: In - and around - Prague's Na Prikope Street
Last month, many Prague residents were surprised to learn that their very own Na Prikope Street, one of the most picturesque avenues found smack in the city centre, had finished 18th in a survey gauging the most expensive streets in the world, most sought-after by retailers willing to pay the highest rents. The survey, called Main Streets Across the World, prepared annually by real estate consultants Cushman & Wakefield Healey & Baker, ranked avenues like Manhattan's Fifth Avenue and London's Oxford Street in the top five, as the most expensive of all.
"Prague is definitely the most sought-after location - and the main reason behind is that you already have a presence of good brands, and it's a prime retail, prime office, prime tourist destination. Na Prikope is a very, very busy trading location - the strongest retailing street in Central Europe."
Na Prikope Street has a lot going for it, not least classical historic buildings, close connection to the historic Old Town, and a long pedestrian walk-thru of white and grey cobblestone. Plus a minimum of cars at the streets far end: perfect for window shopping and drawing in customers. Those elements and more have made Na Prikope essential for shops like Zara, Benetton, Clockhouse, and Salamander as well as Czech franchises - looking to tap into a strong local market but also tourism, which for retailers can represent anywhere from 20 - 50 percent of turnover. The struggle to be on Na Prikope has - in effect - spurred a kind of 'feeding frenzy'. When good space does become available there is plenty of demand, which jacks up the rental price.
"What we're actually seeing with Na Prikope in Prague is that in 2002 the street placed 25th as the most expensive street in the world. Now, in 2003, it's made it to 18th position and this represents a 25% increase in retail rents on Na Prikope in one year, which is very, very large growth. What we have at the moment on Na Prikope is it's a fairly short street, most of the decent shops have been taken by local or international retailers, and it's very difficult to find good retail space. Part of the reason is not only because the demand is so high and there aren't so many buildings, but it's that you have very, very old, historic buildings in the centre of Prague 1, which are not only protected locally, but also by UNESCO. And one of the most difficult things you have is if you want big, modern retailing space it's easier to build a building to suit it, which you can not do on Na Prikope. Having the difficulty of old structured buildings, where it is difficult to change the facades and everything, it's not easy to match it with the modern needs of the modern retailer. So, hence, if you get a good shop which becomes available, which suits that retailer, the demand for it is very, very strong. A lot of retailers are fighting to get that space, and hence that sees the rise in the rents on the back of it.""
Still, if a retailer can find what he needs on Na Prikope Street he gets an address with definite class.
"Because it's historic and because they're old buildings doesn't mean at all that it's less appealing to retailers, on the contrary - it's often very much more appealing. Obviously if you didn't have the beautiful old buildings you wouldn't get the tourists..."
Which is not to say that Na Prikope, with its high rents, has the highest prices. Prague residents often note that despite being a very classy street - it remains highly accessible, even on a Czech budget. Jonathan Hallett again.
"Yes, what we're seeing is that many of the most expensive streets in Europe will not always have the most expensive shops present on that street. Na Prikope is a "high" street, a street where the fashion is available to the masses. We can compare it to Oxford Street in London, and if you look at Oxford Street you do not have the most upmarket brands. Traditional, good retailing streets where you have a lot of pedestrian flow are generally the most expensive, but it is mass turn-over that makes the difference, rather than having the highest prices. That is where Na Prikope stands."
Sure, there will always be those who complain or balk at the increased commerciality of the Christmas season, but it seems that Prague still knows how to find a proper balance. There is something for everybody, but there is a poetry to it as well - if one knows how to look for it. A street of architectural calibre like Na Prikope is able to keep values centred - both the commercial and the rare - the best of both worlds. Someone who can appreciate that is Katharine Butler, the director of Prague's only multi-story toy emporium - Sparkys - founded in 1998. Located just off Na Prikope Street, (Havirska 2), it is a must to visit if you have children, or for that matter even if you don't.
"We're so close to Na Prikope and it's a very wide street that we have - we get a lot of people who come down from Na Prikope and just see the lights from the shop. On the other hand, we also get a lot of trade simply because we are who we are and we are quite well-known now in Prague. It's a big advantage to be in the main shopping area but on the other hand we have a disadvantage that there isn't any nearby parking. Parents with children don't like to walk too far. But, basically the fundamental rule of retail is location, location, location."
One thing that Sparkys does have is space and lots of it...
"We tried to create a place that was fun as well as a toy emporium. The size is one of those things which is a blessing and a curse. In the toy industry you do all your sales at Christmas, so for us ten months of the year the shop is far too big and for the last two months it's far too small!"
With Christmas so close, I was tempted to ask Katharine Butler about her store's best selling Czech toy...
"I would say that the thing that has survived most strongly and will always survive is 'Krtek' - he's the little mole. He's the creation of the Czech Walt Disney, a man called Zdenek Miller. He is so popular because parents were used to reading his books. All the products connected with him will sell and are extremely strong sellers Most of them are made in the Czech Republic, though quite a few products are also made in China, based on the Krtek character."
"There's a company called Kovap that make tin vehicles of different types. I think they're extremely attractive and very traditional. But probably something that an adult would like more than a child. A lot of the wood is absolutely beautiful. But, it's unfortunate that the factories don't tend to innovate very much. They stay with the same designs that they've had for hundreds of years and unfortunately they're suffering as a consequence. Even though the items are beautifully made and are very attractive."
Whether such Czech toys shall survive is of course dictated by a variety of factors and market conditions, not unlike the situation of many of the retailers themselves - in and around Na Prikope Street. Some gauge the costs and profits carefully and persevere, others like Sparkys have become very well established, others fail. Despite the risk, many Czech businesses have, on the whole, done well on Na Prikope Street, showing remarkable perseverance and creativity. Once again, Jonathan Hallett of Cushman & Wakefield Healey & Baker.
"The local brands work very, very well, the difference being that some of the international brands can come in and have very big marketing budgets. Therefore, due to the marketing but not just the marketing also the name and everything else, they are global brand names. So, naturally, they are going to be very, very strong. As far as the Czechs are concerned you've got the smaller brands like Fokus Optik. They're on Na Prikope but actually have a huge chain of shops across the country. We look at names like Pietro Fillipi - it sounds foreign, it's actually a completely Czech company - sounds foreign, the name was made up. These are, these are the companies developing..."
Prague's Na Prikope Street - it is one of those avenues you'll find yourself returning to again and again. Whether to duck into a café for a quick espresso, or to leaf through a book in the corner bookstore, or try on clothes in a variety of different shops, or in the end, to walk outside looking at the lamplights and the mannequins and the stars - there is only one street like it. Who knows, next year Na Prikope could make the top fifteen on the Main Streets survey. You can smile in the knowledge you're walking for "free" on some very expensive ground.
