Prague is emerging as a key driver of Europe's retail recovery in 2025, according to Savills Research European Retail Market. The Czech Republic ranks among Europe's top-performing economies, with real retail sales expected to grow by 4.1% this year, outpacing Germany (2.7%), France (2.3%) and the United Kingdom (0.8%).
Pařížská Street in Prague remains the region's strongest luxury high street and continues to attract major global brands. Recent and upcoming openings include Chanel, Ermanno Scervino, Damiani, Max Mara, and Pasquale Bruni.
"The Czech capital continues to reinforce its reputation as one of Europe's most attractive entry points for international brands. In 2024, Prague matched London in welcoming the highest number of new international brands, 38 in total, the strongest performance among all CEE cities," says Veronika Králová, Research Analyst at Savills. Prague's competitive advantage is underpinned by robust domestic demand, strong tourism inflows, and accelerating consumer spending.
Consumer spending across CEE markets has expanded significantly over the past 15 years, increasing the region's attractiveness to value-oriented, aspirational, and luxury brands. Warsaw and Prague are appealing due to lower occupational costs, with prime flagship rents 55% and 20% below the gateway city average, respectively.
US brands have become the largest single international origin market, representing 25% of all new international store debuts, up from 14% in 2024. "Recent trade tensions may have generated some macro-economic headwinds, but for US retail brands and F&B concepts, it appears to have accelerated expansion across Europe's key cities," comments Marie Hickey, Director in Commercial Research at Savills.
