New brands heading to Czech market despite Covid-19 pandemic
Despite the Covid-19 pandemic, some 25 new foreign brands entered the Czech Republic’s market in 2020, one more than in the previous year, according to a new survey carried out by the company Cushman & Wakefield, published by the daily Aktuálně.cz.
The global coronavirus pandemic has hit retailers all over the world, mainly shopping streets and malls.
“Nevertheless, Prague and the Czech Republic have always been and will continue to be the most important market for brands entering the region,” says the Cushman & Wakefield report.
According to the report, the number of new foreign brands entering the Czech market could be even higher this year.
“The number of newly arrived brands could be even higher this year, because some of them have postponed their opening due to the coronavirus crisis.”
“Prague, where most of the brands are heading, has long been a popular tourist destination. That’s why we expect that this significant buyer power will return here as soon as it is possible,” says Jan Kotrbáček, head of the company’s retail services.
He also highlights the growing customer potential of local people, whose purchasing power has been increasing in recent years.
“More than half of the newly arrived brands are from the premium and luxury segments. According to the shop-owners in Pařížská Street, customers from China and Russia have been replaced by Czech customers, who can increasingly afford to buy luxury brands.”
Most of the new brands that entered the Czech market in 2020 come from the United States and Italy. Most of them are fashion brands, including the American clothing label GAP and American Eagle, French Saint Laurent, New York shoe-maker Steve Madden and Swiss watchmaker Swatch.
Many of the brands have opened their stores in Pařížská and Na příkopech, the two most expensive shopping streets in Prague.
Apart from a number of luxury fashion brands, several new discount stores also entered the Czech Republic’s market in 2020. Apart from the popular Pepco, two German discount brands Tedi and Action opened their first stores in the country last year.