Central and Eastern Europe (CEE), encompassing the six growing economies of Romania, Bulgaria, the Czech Republic, Hungary, Poland, and Slovakia, presents an increasingly promising environment for major international brands, including luxury, with significant potential for expansion and profit margins. According to Colliers’ recent report ”Luxury Retail Brands in CEE,” most exclusive brands in the Romanian market are present through multi-brand or mono-brand stores operated in a franchise system. 

The report analyzes 179 brands present in the region and categorizes them into ultimate and aspirational luxury, affordable luxury, and premium brands. The largest share of these brands in the CEE region is found in the Czech market, where they are present either directly through their own stores or through franchise partnerships, followed by the Polish market. 

In Romania, exclusive brands primarily enter the market through multi-brand stores, whereas in the Czech Republic, most are represented by their own stores.

Significant investment, mainly from the private sector, is beginning to transform buildings and areas across Bucharest, according to Colliers consultants, which explained that the city’s strong economic profile has encouraged the growth of a substantial middle class. 

The Romanian capital also boasts one of the highest densities of high-income earners in the EU, comparable to Helsinki and London, which has contributed to the development of a vibrant network of high-end restaurants and bars.

Liana Dumitru, Director of Retail at Colliers, said: “One of the key drivers of Bucharest’s economic performance is its large and growing community of over 100,000 IT professionals and a vibrant start-up ecosystem. This has led to the rise of a growing class of high-income earners and the emergence of globally successful companies. We expect these growth factors to persist, further boosting the development of the local economy.”

According to Colliers, modern retail in Bucharest is dominated by a few large shopping centers spread across different parts of the city, which draw attention with their impressive size and variety of brands. Depending on their tenant mix, concept, and positioning, they have become favorite destinations not only for Bucharest residents but also for people from surrounding areas and neighboring cities.

“A notable example is Băneasa Shopping City, located in the north of Bucharest. Over the years, it has positioned itself as a destination for middle- and high-income consumers, attracting numerous premium and luxury brands. Many of these brands have chosen to enter the Romanian market exclusively by opening a store in this shopping center. Currently, Băneasa Shopping City boasts the highest density of premium and luxury brands in the capital,” Colliers said.

Calea Victoriei and, to a lesser extent, Calea Dorobanților are the main areas in Bucharest where luxury brands have chosen to establish themselves. Over time, these areas have become destinations for their specific consumer segments. However, the high rotation of stores in these locations suggests that the market is not yet mature, and the number of brands present is not enough to create a robust retail synergy, as seen in the pedestrian central areas of major European capitals.

Since its opening, another key attraction for luxury brands has been the Grand Avenue shopping gallery, located on the ground floor of the 5-star JW Marriott Bucharest Grand Hotel. Over the years, major fashion, accessories, and jewelry houses have opened their first stores here.

However, Colliers said, compared to neighboring and Western countries, many brands are still absent in Romania, which classifies the market as emerging. Most brands, such as Dior, Armani, Dolce & Gabbana, and Burberry, are present through franchise partnerships or multi-brand stores, with Louis Vuitton being one of the few big names directly represented.

In Central and Eastern Europe, Prague is the top choice for luxury and premium brands, according to the same report.

irina.marica@romania-insider.com

(Photo source: Irina Ukrainets/Dreamstime.com)