Prague Has Caught Up to London in the Number of New Brands, Driven by U.S. Brands

Prague Among Europe’s Leaders

In 2024, Prague attracted 38 new international brands —the same as London, and the most of any city in Central and Eastern Europe. According to a Savills study, the CEE region has transformed from a secondary expansion target into a primary entry point for international retailers seeking growth outside the saturated markets of Western Europe. Czech retail sales are expected to grow by 4.1%, significantly outpacing Germany (2.7%), France (2.3%), and the United Kingdom (0.8%).

Prague also leads among 96 major European urban markets in expected growth in per capita consumer spending through 2030: 5.1% for fashion and footwear, 6.7% for furniture, and 7.9% for telecommunications equipment. Pařížská Street remains a magnet for new luxury brands—current and planned openings include CHANEL, Ermanno Scervino, Damiani, Max Mara, and Pasquale Bruni.

Lower Rents as a Competitive Advantage

According to Veronika Králová, an analyst at Savills, Prague is cementing its reputation as one of the most attractive entry points for international brands thanks to a combination of strong domestic demand, tourism, and accelerating consumer spending. Price also plays a key role—premium rents for flagship stores in Prague are 20% lower than the average for European “gateway” cities, and in Warsaw they are as much as 55%. These lower entry costs thus create room for market testing that brands could not afford in established Western European metropolises.

Warsaw is taking a different path than Prague— 70% of new fashion and jewelry entries since the beginning of 2024 fall into the aspirational or luxury segment.

American brands are driving European expansion

While European brands still hold 56% of new store openings in the region, American chains (including dining concepts and fashion) now account for 25% of all new international stores in Europe—last year, that figure was only 14%. This acceleration is linked to trade disputes and declining consumer confidence in the U.S., prompting American companies to seek growth in Europe instead. The trade agreement between the EU and the U.S. concluded this summer also contributed to this trend.

Source: ThePrime.cz, Savills Research