The requested news item does not exist. Please return to News
Foreign retailers interest, refurbishment of the city centre and changing shopping patterns drive the development of the high streets in Warsaw
Warsaw, 19th April, 2013 – Jones Lang LaSalle has published Warsaw High Street & Shopping Centre Report. Its key element is the complex analysis of the current situation and the prospects for development of Warsaw’s key high streets - Nowy Świat, Marszałkowska, Mokotowska, Chmielna, Plac Trzech Krzyży and its adjacent area. The Warsaw report is the first in a series of analyses covering high streets in the key Polish agglomerations.
Patricia Lannoije, Head of Research & Consulting, Jones Lang LaSalle, says: “The dominance of shopping centres in Warsaw and the rest of the country, is a reflection of the shopping habits of Polish consumers, who tend to prefer covered schemes to exposed streets and are used to being able to choose from a wide spectrum of brands all found 'under one roof' – in a shopping centre. Although this tendency will continue, we observe a resurgence in the popularity of high street destinations among Varsovians, which is supported by a growing influx of tourists. A new generation of customer is looking for new ways of spending time out, new shopping experiences and unique places which high streets definitely are”.
Development factors: When compared to other European countries, such as UK, Italy, France, Spain, Germany, or even the Czech Republic and Hungary, Poland has patchy retail thoroughfares, but with definite growth potential. Over the last decade, Warsaw’s high street landscape has undergone a transformation. A number of old assets have been refurbished or re-developed (Dom Dochodowy o Trzech Frontach; a couple of tenements along Nowy Świat and a small department store Mysia3) and new developments have emerged (vitkAc department store – home to a number of luxury brands, Holland Park and Chmielna 25 (under construction). High street retailing is shared by five key locations - Nowy Świat St, Marszałkowska St, Chmielna St, Plac Trzech Krzyży, Mokotowska St. and the area nearby.
A number of streets have been revitalized, which has contributed to the increased attractiveness of high streets among an increasing number of brands that want to operate flagship stores there. Another key factor of development is that limited shopping centre supply is forcing retailers to see the opportunities that the high street has to offer. It is seen as an additional sales and distribution channel and a marketing tool, raising both brand awareness and prestige. Moreover, luxury high-end brands in particular have a preference for high street locations over regular shopping centres, reflecting the strategy they employ on their home markets. As a result, Warsaw’s high street locations have been increasingly attracting interest from potential retailers and also – institutional investors.
Agnieszka Kołat, Associate Director, CEE Retail Capital Markets, Jones Lang LaSalle comments: “Recently we have observed increased core investors’ demand for prime high street opportunities. Earlier this investment market segment was non-existent, mainly driven by lack of institutional quality products available for acquisition. Interest in this segment has existed since the beginning of the market, however high street retail as such has only recently started to develop more intensely with top brands securing the best high street locations in Warsaw and other major Polish cities. Furthermore, certain core funds have at the moment a requirement to buy smaller volume products e.g. up to €80 million, which is impossible to find in the prime shopping centre sector”.
Demand and vacancy rate: Two retail categories dominate the high street retail landscape in Warsaw, namely gastronomy, and clothing, footwear and accessories, both accounting for nearly 30% each of the total number of unit shops on all Warsaw high streets. A positive tendency is the falling number of banks and financial institutions opening along high street locations. The vacancy rate is currently at 6% (29 units).
+48 502 220 557