Oxstones Investment Club™According to the latest PMR report, “Clothing and footwear retail market in Central Europe 2011. Market analysis and development forecasts for 2011-2013”, the overall fashion market in the Central European (CE) region was worth €12.8bn in 2010, after a 2.5% increase in local currencies and an 8% growth in euro. We expect a further increase of almost 5% in 2011, mostly in Romania and Poland.
After a major downturn on the Central European retail markets in 2009, last year brought an improvement in the clothing and footwear (C&F) industry. However, growth did not return to all countries. The slowdown continued in Hungary and Slovakia in 2010, whereas the Czech Republic’s fashion market stagnated. Between 2011 and 2013, all of the CE clothing and footwear markets analysed are expected to rise, although at different rates, and to achieve combined sales worth more than €15bn in 2013.
Poland remains the largest fashion market in the CE region analysed. In addition, the Polish fashion industry was less severely affected by the economic crisis than those of the other countries. The Polish companies, LPP and NG2 are among the strongest players on the clothing and footwear CE market in terms of sales revenues and storecount. LPP is the undisputed leader of the clothing and footwear CE market, whereas NG2 is second to Deichmann in terms of sales and leads the field in terms of storecount. In contrast to the German footwear retailer, NG2 operates in only two countries of the region: Poland and the Czech Republic.
Taking into account the number of stores operating in the Central European region, Orsay and Deichmann are the most numerous clothing and footwear retail chains. They are present in each of the five markets considered, with around 250 and 415 active stores respectively in mid-2011.
Slovakia is estimated to have the highest sales per person figure expressed in euro, and Romania the lowest, additionally impacted by the most severe slump in sales in 2009 among the CE markets under consideration. However, the latter is expected to witness the most dynamic increase over the next three years, in terms of spending on clothing and footwear.
Romania is the least developed country in the CE region. Many international companies have only just opened their first stores in the country. At the end of March 2011, the Swedish H&M finally entered the Romanian market, and this was the main recent event in the Central European fashion industry. The expansion of clothing and footwear retailers usually takes place in tandem with the development of shopping centres. Another PMR report, “Shopping centres in Central Europe 2011”, confirms that, in comparison with the end of 2010, Romania, Poland and Slovakia will see the most marked increases, of at least 50%, in leasable area (GLA) between now and 2013. Shopping centres remain the key distribution channel for clothing and footwear retailers. However, increasing numbers of customers are purchasing clothes via online stores, which are more popular in the Czech Republic than elsewhere among the CE countries analysed – adds Dominika Kubacka, a PMR retail analyst and the coordinator of the reports.
The CE region refers to the Czech Republic, Hungary, Poland, Romania and Slovakia.
This press release is based on information contained in the latest PMR report entitled Clothing and footwear retail market in Central Europe 2011. Market analysis and development forecasts for 2011-2013.
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Tags: apparel markets in emerging markets, clothing and footwear markets in eastern europe, consumer trends in eastern europe, Czech Republic, Deichmann, Eastern Europe, Hungary, LPP, NG2, Orsay, poland, Polish companies, retail market, romania, Slovakia