Prague is the only city in the CEE region to boast a prime high street, a shopping street with only the most prestigious global brands, according to Colliers. This location is Pařížská (Paris) Street, where currently 46 out of 48 available retail units are occupied.
The interest in premium brands in this location has increased significantly since the COVID-19 pandemic subsided. According to experts from Colliers, it is only a matter of time before another similar zone is created in Prague and the city's reputation as a global player in luxury retail grows even more.
The first brand to be represented in Prague was Versace in 1995. However, the first luxury boutique was opened in 1997 by Hermès in Pařížská Street, followed a year later by Louis Vuitton. Today, a total of 26 boutiques dedicated to fashion and accessories, including 7 jewellers, 6 luxury watchmakers, 4 leather accessory producers and 2 luxury shoe designers can be visited in Prague's Pařížská Street.
After the arrival of Hermès, it took less than 10 years for the street to become a luxury shopping destination with a mix of direct and partner-run stores. Paris Street is also expanding. The redevelopment of the Fairmont Hotel includes several new retail spaces located along Pařížská Street.
Colliers is working to make other CEE capitals attractive destinations for luxury brands. As seen in Prague's Paris Street, creating a Prime High Street is a long journey. Other adepts include Budapest and Warsaw. Budapest is relatively close to the creation of a Prime High Street. Andrassy Boulevard is already home to several luxury brands such as Louis Vuitton, Jimmy Choo, Moncler and Gucci. Plus, there is still room for more of the top brands. However, the weak economy and the lower purchasing power of the local population have so far prevented the creation of a desirable environment for luxury brands. Warsaw is one step closer to having a Prime High Street. Many luxury brands are already represented there, albeit only through partner multi-brand stores. But it's a relatively quick journey from those arrangements to privately-owned branded boutiques. The situation in the Polish capital is helped by the local population’s increasing purchasing power and the growing number of tourists.
