RETAIL SERVICES GLOBAL CITIES RETAIL GUIDE CUSHMAN & WAKEFIELD CUSHMAN & WAKEFIELD 2012/2013. Slovakia

Transcription

1 RETAIL SERVICES GLOBAL CITIES RETAIL GUIDE 2012/2013

2 Overview is a small country in the heart of the Central Europe, between East and West, and between Poland, Hungary, Ukraine, Austria and the Czech Since gaining its independence from the Czech Republic in 1993; the country joined the European Union in 2004 and the Eurozone in belongs among the fastest growing economies in European Union. It has a population of some 5 million. In recent years many new brands have entered the market. Brands like Peek & Cloppenburg, Marks & Spencer, H&M, Inditex brands are trading successfully here. People in are very fashionable and love brands. In addition, they are willing to spend money on fashion.

3 Economic Overview economic summary ECONOMIC INDICATORS* E 2012F 2013F GDP growth Consumer spending Industrial production Investment Unemployment rate (%) Inflation US$/ (average) US$/ (end-period) Interest rates: 3-month (%) Interest rates 10-year (%) NOTE: *annual % growth rate unless otherwise indicated. E estimate F forecast Source: Oxford Economics Ltd. and Consensus Economics Inc. economic breakdown Population 5.4 million (mid-year 2011) GDP US$96.1 billion (2011) Public sector balance -4.73% of GDP (2011) Parliament President Prime Minister Election dates Smer (83 of 150 seats) Mr. Ivan Gašparovič Mr Robert Fico March 2014 (Presidential) June 2016 (Parliamentary) retail sales growth: % change on previous yearsl SLOVAKIA F 2013F Retail Volume % -2.21% -2.83% -2.28% 2.18% Retail Value % -0.92% 1.43% 0.95% 4.20%

4 Largest cities largest cities (2011) CITY POPULATION Bratislava 411,000 Kosice 240,000 Presov 92,000 Nitra 81,000 Zilina 80,000 Banska Bystrica 79,000 Trnava 66,000 Martin 57,000

5 Retail Scene MAJOR DOMESTIC FOOD RETAILERS Coop, Terno, CBA MAJOR INTERNATIONAL FOOD RETAILERS Tesco, Billa, Lidl, Kaufland, Carrefour MAJOR DOMESTIC NON-FOOD RETAILERS GATE, Exisport, Panta Rhei, Dracik INTERNATIONAL RETAILERS IN SLOVAKIA Inditex brands, Peek & Cloppenburg, Mango, Marks & Spencer, Next, Promod, baumax, Hornbach, Ikea FOOD & BEVERAGE OPERATORS Coffeeshop Company, Shtoor café, McDonalds, KFC, Papa chicken, Coffee & Co. TYPICAL HOURS MONDAY-FRIDAY SATURDAY SUNDAY

6 Retail Scene The n retail market is often overlooked by international retailers in favour of its larger neighbour the Czech Republic. However attention is now increasingly focused on as the Czech Republic has become more mature. International retailers have exerted considerable influence in the market. Bratislava has been the main focus for international retailers but some other cities are developing their retail offer. High street retail in is in its relative infancy. Tenants tend to be mainly local retailers and businesses. There are occasionally some good retailers present on them. While Obchodná Street is emerging as the centre of high street retail in Bratislava, the development of is at embryonic stage, especially in comparison to the capitals of neighbouring countries (Vienna, Budapest, Prague). Despite shoppers in and Bratislava being more aspirational than in many western countries, the relatively small tourism market and the proximity to Vienna have so far prevented the market from establishing a notable luxury retail segment. Modern n retail is dominated by shopping centres. Space in shopping centres totalled 1,137,666sq.m in July 2012 in 61 centres. There is below European average levels of floorspace in shopping centres (209.2.m/ 000 population compared to 250.1sq.m/ 000 in the EU27 at July 2012). The most successful shopping malls have 100% occupancy with retailer waiting lists. The typical entry point for international brands is the top shopping centres. The retail warehouse market in is developing. A number of international retailers have entered the market from sectors such as DIY, electrical goods and furniture. Operators such as Jysk, Kik, Takko, Deichmann, DM, Planeo, baumax, The first outlet shopping centre in is due to open in the spring of One Fashion Outlet will be situated to the east of Bratislava and will have outlets. E-commerce is growing quickly in as internet penetration increases. Retailers can enter direct and it is relatively easy to do so. The n government is pursuing a pro-business modernising agenda and has made deep structural reforms to create a business-friendly environment. Some retailers also choose the franchise route. Retailers in usually require 5 years leases + option which gives them opportunity to extend the lease. On the other side, landlords insist on indexation of the lease. new entrants to the market Karen Millen Coccinelle Pinko Jennyfer Sports direct Shana T.M. Lewin Since it is a retailers market in, tenants can occupy a new premise within few weeks. However to secure good location in best shopping malls can take several months.

7 Key Features of Lease Structure KEY FEATURES OF LEASE STRUCTURE Lease Terms Rental Payment Rent Review Service Charges, Repairs and Insurance Property Taxes and other costs Disposal of a Lease Valuation Methods Legislation Typical lease terms for retail units are generally five or ten years, often with options to extend (5 or 10 years). Rents are quoted in EURO per sq m per month. Usually no break options but can be agreed for large requirements. Restrictive user clauses are common. Payable quarterly in advance for shopping centres, Monthly for high street units. Frequently turnover rents of between 3-10% (depending on use) are employed in new retail developments. Turnover rents are usually subject to a base rent. A security deposit equivalent to three months rent, service charge and VAT applicable on the amount is usually required or the equivalent parent company guarantee. Tenants can be asked to provide a bank guarantee in office transactions. Premiums/key money paid exceptionally in retail deals. Rents indexed annually to Eurozone or EU 27 HICP inflation. Statutory right to renewal is negotiable. Rents indexed annually to Eurozone or EU 27 HICP inflation. Statutory right to renewal is negotiable. Rents are indexed automatically on an annual basis. Landlord is responsible for external structure and is negotiable in high street deals. Tenants are responsible for internal repairs. Service charges are usually paid by the landlord by tenant charging. Utilities are not included in service charges. Landlords are responsible for building insurance. Tax applies to ownership of real-estate (The local property tax or dan z nehnulelnosti ) and is typically paid by landlord to the local government annually. It is a scale calculation, usually passed on to tenant via service charges or base rent. 20% VAT in most cases. Sub-leasing is negotiable but is always subject landlord approval. Early termination is negotiable but subject to penalty. The tenant is responsible for reinstating the premises with the exception of wear and tear at the end of the lease. There is no absolute standard for measuring floor space, although generally net internal area (sometimes excluding, sometimes including vertical circulation) GIF or BOMA are used. Industrial leases do not tend to follow a particular standard. Usually the ground floor has a higher value than other floors. Code 116/90. A standard lease contract is signed between the tenant and the landlord. Leases are legally binding on both parties.

8 JOHN STRACHAN Global - EMEA Ph: Portman Square London, England W1A 3BG john.strachan@eur.cushwake.com MATT WINN Americas Ph: Ivan Allen Jr. Boulevard, Suite 700 Atlanta, GA matt.winn@cushwake.com SANJAY VERMA Asia Pacific Ph: /F The Headquarter Building 168 Xizang Zhong Lu Shanghai, China PRCi sanjay.verma@ap.cushwake.com No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals Cushman & Wakefield, Inc. All rights reserved.