Retail landscape of Warsaw city centre MAIN HIGH STREETS

Introduction 3 High Streets in Warsaw – an analysis of the retail offer OFFER BY DISTRICTS OFFER BY MAIN FUNCTION OF THE BUILDING OFFER BY SECTORS OFFER BY TENANT TYPE VACANT SPACE

High Streets in Warsaw – an analysis of the potential FASHION FMCG GASTRONOMY & LEISURE

Conclusions and forecast VARIOUS PROSPECTS… CURRENT SHAPE FAR AWAY FROM EXPECTATIONS… THE POTENTIAL DEPENDS ON THE SECTOR… PRO-ACTIVE POLICY IS A CHANCE FOR A DEVELOPMENT…

Streets with good vibe

4 4 4 4 5 5

7 7 8 8

10 10 10 10 11

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Introduction Warsaw is the largest and the most competitive retail market in Poland. It consists of: shopping centres, hypermarkets/supermarkets, street markets, market halls, suburban retail parks and outlet centers, department stores and shops on the ground floors of residential and office buildings.

shoes and fashion accessories. Based on this, the available retail-service-gastronomy offer in the analysed districts was evaluated. Furthermore, conclusions and forecasts in terms of further retail development in the city centre were made in the context of existing and future competitors in other sectors. Sectors with growth potential were highlighted, as well as those that will face difficulties if they are present on high streets in the centre of Warsaw.

The renaissance of high street retail expected by city government, investors, developers, tenants and residents was a good reason for Colliers International to carry out a detailed research and analysis of this market sector. The analysis included a review of the competitive position of the sector in comparison to other retail distribution channels. We decided to make an attempt to assess what chances this renaissance has and what pace it may take. This report was conducted within the cooperation with GfK Polonia, which helped us with its know-how in the field of consumer habits and the structure of spending of Warsaw residents.

The chapter ‘Streets with good vibe’ is a supplement to this report and it showcases seven selected streets that are neither main communication arteries nor main retail locations in the city centre, but they are streets with their own atmosphere, places where people spend their free time and where you can implement innovative concepts and alternative ways of doing business. The authors are aware of the complexity of the development of retail streets. The aspects described in the report do not exhaust all the problems that enterprises planning to expand in this segment face. Legal, planning, communication and social aspects have a great impact on the pace of high-street development. When it comes to Warsaw, “the Bierut decree”2 is also important and the consequent problem of claims from former owners. Nevertheless, in our report we focused mainly on the competitive aspect of high streets in the context of changing consumer habits in Warsaw. Enjoy the read!

The research was conducted in H1 2015 and covered seven central Warsaw districts: Śródmieście, Mokotów, Ochota, Wola, Żoliborz, Praga Północ and Praga Południe. Within this area the most attractive retail areas1 were identified and all tenants were recorded and classified by their business profile. The buildings were also classified by units and in terms of their function (residential, office, commercial, other) and the basic attributes of their attractiveness. Existing vacancies and projects under construction were also recorded. The next step was a description of consumers’ habits in Warsaw prepared by GfK Polonia focusing on fashion,

Przemysław Dwojak DIRECTOR | CUSTOMER ANALYTICS & SALES STRATEGIES DEPARTMENT [email protected] +48 502 196 091

Dominika Jędrak DIRECTOR | RESEARCH AND CONSULTANCY SERVICES [email protected] +48 666 819 242

Ewa Wasilewska PROJECT MANAGER | CUSTOMER ANALYTICS & SALES STRATEGIES DEPARTMENT [email protected] +48 22 43 41 481

Katarzyna Michnikowska SENIOR ANALYST | RESEARCH AND CONSULTANCY SERVICES [email protected] +48 607 559 587

1

Unbroken string of shops, services and restaurant points with the intensive pedestrian/car traffic 2

3

Nationalization law aimed, in theory, to reconstruct capital city after World War II

High Streets in Warsaw – an analysis of the retail offer OFFER BY DISTRICTS

Within the selected retail zones, new investments that offer commercial premises on the ground floor for lease are the exception. The limited amount of retail space under construction or being modernised is one of the factors limiting high-street development in Warsaw. Some of the largest projects that will bring new retail/ service/gastronomy space in the centre of Warsaw are: the rebuilding and modernisation of DT Smyk on Jerozolimskie Avenues, the Ethos office building on Trzech Krzyży Square and Hala Koszyki on Koszykowa Street, as well as the revitalisation of Art Norblin on Żelazna Street and Koneser on Ząbkowska Street. Moreover, office projects with a retail segment can be added (for example Sienna Towers on Towarowa Street, Centrum Marszałkowska and Astoria on Przeskok Street).

For the purpose of this report, 27 retail zones were identified, where approximately 2,860 shops and service/ gastronomy units are located. The vast majority of retail zones (20) and units (1,880) are located in the Śródmieście district. The greatest number of units, within the analysed area, is located on Marszałkowska, Grójecka and Jerozolimskie Avenues. Worthy of mention is the increase in the attractiveness of retail zones and their units in the Praga Północ district (10% share in the research), which is caused by better accessibility because of the second line of the Warsaw Metro underground system. A similar phenomenon can be expected in the near future in Wola. Due to the existing urban structure of the district, it is difficult to identify attractive retail zones in Żoliborz. Therefore, the share of units in Żoliborz is small in the study.

Type of buildings with premises located on the analysed high streets in 7 Warsaw districts type of buildings 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

No. of premises on the analysed high streets in 7 Warsaw districts No. of premises on the analysed high streets in 7 Warsaw districts

2,000

1880

1,800 1,600

1,400 1,200 1,000

lokale

800 600 400

270

200 0

Śródmieście Praga Pn

240

Ochota

190

Wola

155

Mokotów

90 Praga Płd

79%

percentage

residential

10%

8%

office

other

3% retail

Source: Colliers International, November 2015

OFFER BY SECTORS The space available in the retail zones under analysis is highly differentiated. The largest tenant group (23%) are cafes, restaurants and bars. Services account for 16% of the total (by number of units). The grocery sector is also well represented (10%), as well as fashion (9%) and finance (8%). Unfortunately, sports equipment and children & maternity shops have almost disappeared from high streets in the city centre.

35 Żoliborz

Source: Colliers International, November 2015

OFFER BY MAIN FUNCTION OF THE BUILDING

Despite the wide variety of available space, some of the streets under analysis can be said to have specialised sectors. The most important one is gastronomy; within the considered streets, the most ‘gastronomic’ one is Szpitalna Street, where restaurants, bars and cafes account for 71% by the number of units. The grocery sector is quite visible on many high streets in the city centre. Ząbkowska, Targowa and Grójecka Streets are

The premises under analysis are located on the ground floor of buildings of various use. Residential buildings prevail (79%), including old townhouses of a low technical standard. The vast majority of premises (89%) have shop fronts and entrances directly from the street, which is the main advantage in terms of retail and an additional value for services/gastronomy.

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good examples. The street with the strongest fashion offer is Mokotowska, where fashion stores account for 29% of units. Chmielna is the leader in terms of traditional shoe shops, which make up 13% of all retail units. Contrary to popular belief, the financial sector has not dominated central districts, even on Wilsona Square (this place is often given as a negative example). Banks and other financial institutions account only for 21% of the total number of units there.

OFFER BY TENANT TYPE The available space on the streets under analysis is dominated by non-chain operators, which constitute 76% of all tenants. This is quite common in shoes and leather accessories as well as the fashion sector, which even though it is well represented, does not compete with retail chains in shopping centres. Chains are well represented in the financial sector (90%) and groceries (40%). The data analysis confirms the dynamic development of some sectors on high streets observed in the last few years. The sectors growing most rapidly are health & beauty, restaurants and accessories & jewellery which represented 34%, 22% and 21% respectively.

Tenants’ business sector structure on the analysed high streets in 7 Warsaw districts.

VACANT SPACE There are 238 vacant units on the high streets under analysis, most of which are in Praga Północ and Śródmieście, where vacant units account for 9.6% and 9.1% of total stock respectively. On the one hand, the vacancy rate on high streets in the city centre is derived from the quantity and quality of stock, while on the other hand from owners’ development policies.

Vacancy rate on the analysed high streets in 7 Warsaw districts. Vacancy Rate 12%

10%

9.6%

9.1%

8%

7.2% 6.3% 5.7%

6%

LEGEND (SECTOR STRUCTURE IN %)

pustostany

5.2%

23%

GASTRONOMY

4%

MULTIMEDIA

16%

SERVICES

2%

SHOES, LEATHER & BAGS

10%

GROCERIES

2%

ACCESSORIES & JEWELLERY

9%

FASHION

2%

HOME ACCESSORIES

8%

FINANCIAL SERVICES

1%

ELECTRONIC EQUIPMENT

8%

VACANTS

1%

ENTERTAINMENT & LEISURE

7%

OTHERS

1%

CHILDREN & MATERNITY

5%

HEALTH & BEAUTY

1%

4%

SPORTS EQUIPMENT

2%

0%

1.1%

Praga Pn

Śródmieście

Wola

Ochota

Żoliborz

Mokotów

Praga Płd

Source: Colliers International, November 2015

Source: Colliers International, November 2015

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Selected high streets and retail schemes in seven central districts of Warsaw NAME, LOCATION

Shopping centres that were built within the last 20 years have become permanent fixtures on the retail map of the capital city and the way they are used has permanently changed the shopping habits of Warsaw inhabitants.

ARKADIA Śródmieście GALERIA MOKOTÓW Mokotów ZŁOTE TARASY Śródmieście BLUE CITY Ochota

ARKADIA GROCERIES GASTRONOMY

GALERIA WILEŃSKA

WOLA PARK Wola

DOM MODY KLIF WOLA PARK

FASHION ENTERTAINMENT & LEISURE

FORT WOLA

KING CROSS PRAGA WARS SAWA JUNIOR

ZŁOTE TARASY

DOM MODY VITKAC

ATRIUM REDUTA

PLAC UNII CITY SHOPPING

BLUE CITY

CH GOCŁAW

ATRIUM PROMENADA

SADYBA BEST MALL Mokotów GALERIA WILEŃSKA Praga Północ ATRIUM REDUTA Ochota KING CROSS PRAGA Praga Południe

HOME ACCESSORIES SHOPPINGENTERTAINMENT CENTRE

ATRIUM PROMENADA Praga Południe

TESCO

CH GOCŁAW Praga Południe DOM MODY KLIF Wola

SHOPPING CENTRE

DEPARTMENT STORE

HYPERMARKET HIGH STREET COMMUNICATION HUB

HANDLOWOWE

PLAC UNII CITY SHOPPING Mokotów GALERIA MOKOTÓW

SADYBA BEST MALL

WARS SAWA JUNIOR Śródmieście DOM MODY VITKAC Śródmieście FORT WOLA Wola TESCO Praga Północ

KEY OFFER

High Streets in Warsaw – an analysis of the potential The research carried out by GfK Polonia between 2011 and 2014 and the latest research carried out among 2,100 inhabitants of Warsaw from across the whole agglomeration indicate that all of them visit shopping centres3. The only differences are in the frequency of visits. One of the main categories of goods bought in shopping centres are fashion, shoes and accessories. Therefore, this sector was analysed in detail in the following chapter in terms of high streets, shopping centres as well as different customers types.

The purchasing power for fashion per capita in Warsaw exceeds the national average by nearly 70%. The spending power of customers and their attitude towards shopping for fashion brands determines the level of expenditure on these goods. Based on the results of the consumer survey, taking into account income, we can distinguish three types of fashion customers in Warsaw – economic, mainstream and premium.

Types of fashion customers in Warsaw

FASHION The main channel for fashion shopping are shopping centres, chosen by approximately 54% of Warsaw residents. Their advantage over hypermarkets is significant with only 13% of Warsaw population choosing the latter. The distance between successive positions is much smaller. The third position is held by chain stores and non-chain retailers located in street locations.

Places preferred by Warsaw residents for buying fashion, shoes & accessories RANK POSITION

1 2 3 4 5

CHANNEL

PLACES OF PURCHASE MOST OFTEN INDICATED BY CUSTOMERS (%)

Shops in the shopping centres

54%

Hypermarket

13%

Individual chain shops on high street/non central zone Individual non-chain shops on high street/non central zone Internet Street markets/market halls small markets in residential area Outlet centres

7%

Supermarket Discount

Other

THE SHARE OF SEGMENTS IN WARSAW SOCIETY

THE ANNUAL BUDGET ON FASHION BY SEGMENT**

Economic PLN 700 – 1,000*

20%

75% of the average of Warsaw budget

Mainstream PLN 1,500 – 3,000*

50%

95% of the average of Warsaw budget

Premium - over 3,000*

30%

130% of the average of Warsaw budget

SEGMENTS OF CUSTOMERS

Source: GfK Polonia, November 2015, *declared net income per capita, ** as a percentage of the average budget

The largest group of customers is in the mainstream segment, which includes half of Warsaw population. The premium segment is the wealthiest and represents 30%. Its potential for fashion shopping exceeds the budget of the economy sector by approximately 75%.

6%

Shopping centers are the main channel for purchasing “fashion” items for all customers, regardless of their budget. Nevertheless, with the decline of wealthy buyers, shopping centres are giving ground to other channels. The loss of customers from shopping centres to other channels stands at 34% for the economy segment, 22% for the mainstream segment and 15% for premium4 one. The importance of other distribution channels, such as hypermarkets, market halls, street markets, second-hand shops, supermarkets and discount stores is increasing for poorer segments.

5% 5% 4% 2% 2% 2%

Source: GfK Polonia, November 2015. Based on a question: „Please, tell us where do you buy goods of this category most often? One answer only.”

The research data confirms that the position of retail chains on high streets is increasing with the growing affluence of buyers. At the same time, the position

3

Source: GfK Polonia, based on the question „How often do you visit shopping centres located in Warsaw and in the suburbs”. Answer: “I do not visit Warsaw shopping centres” was never chosen 4 Source: GfK Polonia, based on the question „Are you buying clothes in shopping centres in Warsaw?

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of non-chain shops is weaker in the corresponding locations. For the mainstream and premium segments, shops on high streets have the highest ranking, and for the economy segment their ranking drops.

GASTRONOMY & LEISURE The purchasing power for eating out in Warsaw exceeds the national average by over 2.5 times. In the gastronomy category premises near high streets and in residential areas have an advantage over those in shopping centres. Restaurants, bars and other gastronomy premises are chosen by 55% of Warsaw inhabitants while similar services in shopping centres are chosen by 45% of respondents.

Increasing consumer’s wealth results in the growth in importance of high streets, but it must be remembered that the importance of high streets for respondents, as noted at the beginning, is low for those surveyed. This means that tenants located on high streets have their own narrow target group of premium customers, and compete for them with shopping centres. As for economic segment, apart from shopping centres, local markets, non-chain shops and second hand shops compete with each other for customers’ money. Fashion retail chains occupy a lower position here.

The purchasing power for leisure services in Warsaw exceeds the national average by less than 2.5 times. Most popular are fitness clubs and gyms on street and in residential locations, which attract 70% of users. At the same time, fitness clubs in the shopping centres provide their services for 30% of customers. Bowling, billiards and discos in shopping centres are chosen by 40% of respondents, while 60% prefer city centre locations.

FMCG The purchasing power for FMCG goods in Warsaw exceeds the national average by approximately 30%, while for health & beauty goods alone the rate is approximately 60%.

Chosen debuts on high streets in the centre of Warsaw

Hypermarkets and discount shops are the main places where people do grocery shopping in Warsaw. Nearly 80% of Warsaw inhabitants choose them the most often (45% and 35% respectively). Specialised chains on high streets as well as in residential locations are shopping places for only a few percent of Warsaw inhabitants.

• DQ, restaurant, Nowy Świat • Paul, restaurant, E. Platter • Totomato, groceries, Piękna • Desquared 2 Kids, children & maternity, Trzech Krzyży Square

Household chemicals and health & beauty goods are most willingly bought in hypermarkets by approximately 30% of customers. Nevertheless, the second position is held by specialised shops located in shopping centres – approximately 25% of customers. Specialised chains on high streets and in residential locations are chosen by approximately 15% of Warsaw inhabitants and this is the third shopping channel in terms of popularity. As far as cosmetics are concerned, quite a strong position is held by specialised stores: retail chains stores located in shopping centres are in first position. The second position is held by chain stores located on street and in residential areas. They are chosen by 40% and 20% of Warsaw inhabitants respectively.

• Loake, shoes & leather accessories, Chmielna

The choice of shop with daily products such as groceries, household chemicals and cosmetics is determined by a good location – near home/workplace. It is the fourth factor determining customer spending in this category. It affects the choice of shop for 30% of Warsaw inhabitants.

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Potential of Warsaw high streets in numbers DISTRICT

Residents

5

Newcomers

49,000

220

6

GfK Purchasing White collars8 Power Index7

109.2%

12,000

New workplaces

9

0

n/a

In 2014, 2.8 million of tourists visited Warsaw, 67% of whom were the Polish. The remaining 37% were foreign tourists, including those from the United Kingdom (10%), Germany (9%) and the USA (9%). The district that benefits most from this is Śródmieście.

Foreign tourists

10

ŻOLIBORZ

67,300

PRAGA PŁN

250

PRAGA PŁD 138,500

2,220

109.2%

53,000

2,400

100,500

300

116.6%

41,000

0

131,400

120,100

1,080

0

99.5%

8,400

12,000

300

11,600

90

128.2%

126,000

3,000

660,900

OCHOTA

MOKOTÓW

Mokotów has the largest population (approximately 220,000 people) but the pace of residential development in Wola has caused 2,200 people to move there in H1 2015. Those people do their shopping in Wola and use services and food points.

The purchasing power in the Śródmieście district is 28.2% higher than the average for Warsaw – it is one of the reasons why the largest shopping centres are there, as well as department stores and shops with the highest prices are there. Source: 5 GUS; 6 GUS, Colliers International, November 2015 the estimated number of residents in residential projects completed in H1 2015; 7 Gfk Polonia, November 2015, * 100% average for Warsaw 8 Colliers International, November 2015 the estimated number employees in Class A and B 9 Colliers International, offices completed in H1 2015 10 GUS, Foreign tourists in tourist accommodation in 2014

178,300

4,000

WOLA

ŚRÓDMIEŚCIE

84,300

90.9%

219,000

1,130

119.5%

137,000

8,000

55,500

Mokotów is the district with the greatest number of office employees who work in A and B-class offices in Warsaw. Moreover, the pace of office development is the fastest here – approximately 8,000 people will find jobs in offices that were delivered to the market in H1 2015. This translates into additional potential for retail, services and gastronomy.

Conclusions and forecast traffic. In the case of smaller formats, usually only foot traffic based on potential client streams. The key factors are availability and visibility.

VARIOUS PROSPECTS… When considering the potential of high streets, two types of prospects should be differentiated: from the point of view of large retail chains, as well as from the point of view of local businesses. These two groups have a different attitude to assessing a retail location. In both cases, the bottom line, or more specifically the potential to generate turnover, is decisive when it comes to opening or closing a shop. The division into large retail chains and smaller non-chain shops is essential in determine the status of high streets and analysing their development potential.

GfK Polonia, November 2015

Criteria for choosing streets by retail chains – gastronomy & leisure A catchment area derived from a potential client stream. It is not so important where customers come from but the fact that they spend time near that location. In case of a large chains, the elimination of potential competition from other chained catering points by opening own units. Where smaller chains are concerned, city centre traffic supports the placement of units close to each other.

Units that are available on high streets in Warsaw in most cases do not meet the location criteria of the largest retail chains in Poland or those planning to enter the market. They are attractive mainly for local businesses. A large catchment area based on inhabitants and/or foot traffic, which provides a critical mass of potential customers, is the key to the success of retail chain tenants. Local businesses are characterised by being dispersed on secondary shopping streets and by the lack of standardisation. For these types of stores, rental rates for the best locations on high streets are often an insurmountable barrier. Due to being satisfied by much lower revenues, they almost always lose out to retail chains when it comes to paying higher rent.

GfK Polonia, November 2015

CURRENT SHAPE FAR AWAY FROM EXPECTATIONS… The current shape of high streets in Warsaw is derived from the weakness of real estate management policy and spatial planning for retail needs, the relatively low affluence of mass consumers and changing shopping habits. The fact that chain tenants (the creators of shopping habits) are not interested in high streets is caused by the lack of long-term strategies for their construction/revitalization. Non-chain shops fill this gap by offering cheaper alternatives to chain stores that have to deal with higher business costs. Such a multidimensional state of affairs is a serious obstacle for the development of high streets in Warsaw.

Criteria for choosing high streets by retail chains - fashion The required critical mass of potential customers, which in Poland is provided by a location in a shopping centre that attracts a lot of people due to its catchment area based on residents. In terms of high streets, a location with high pedestrian traffic and a wide range of shops that complementary as well as competitive offer is essential.

THE POTENTIAL DEPENDS ON THE SECTOR… According to analysis from the previous chapters, the existing potential of high streets in Warsaw varies depending on the retail sector. Shopping centres that were built within the last 20 years have become permanent fixtures on the retail map of the capital city and the way they are used has permanently changed the shopping habits of Warsaw inhabitants. Additionally, the next challenge that both shopping centres and high

GfK Polonia, November 2015

Criteria for choosing streets by retail chains FMCG A smaller catchment area is needed, depending on the size and type of shop. Often, a mixed location that is residential with high foot

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street retail will face is the increase in the popularity of e-commerce. The higher level of competition does not mean that retail, services and gastronomy will totally disappear from the capital’s streets, but their structure and function will change.

policies of owners in terms of real estate management is a barrier to its further development. Services will therefore grow selectively, depending on the availability of units and the expected level of rent.

PRO-ACTIVE POLICY IS A CHANCE FOR A DEVELOPMENT…

Gastronomy is and will stay a catalyst for the development of high streets in the centre of Warsaw. Nevertheless, a fluctuation of tenants will be observed, mainly within individual concepts. High streets are the main target of the expansion of gastronomy chains, those which are present in the market and those entering it: mainly cafe chains, confectioneries, fast food restaurants and bistros.

High streets in the central districts of Warsaw have an opportunity to develop provided that they will be profiled and the real estate management policy will be pro-active and cooperative with the largest owners. Depending on a street’s character, intensity of the pedestrian traffic and inhabitant and business structure, its retail offer should be profiled towards “daily shopping”, “a place to spend free time” or “exclusive shopping”.

On high streets in Warsaw the development of small grocery stores (including franchises) will be observed and they will actively search for retail units for their business. New residential investments in the central districts of Warsaw as well as modernisations and renewals of old stock will encourage the development of the grocery sector.

The development of high streets in Warsaw is a process that will last for many years and will be full of experiments and spectacular successes and failures. There is no unique idea for high streets, but their diversity and uniqueness as well as an individual, old-fashioned approach to the customer may become their strength, mainly in comparison with the existing repetitive offer of shopping centres and anonymous e-commerce.

The health & beauty sector will continue its expansion, which started a few years ago – both in the form of drugstores and perfumery chains as well as non-chain pharmacies and cosmetics stores. Warsaw streets are witnessing the return of health and beauty services such as clinics, medical surgeries, spas, beauty salons and hairdressers.

10 most popular retail chains on the analysed high streets (excluding financial institutions)

In the coming years, we should not expect rapid development in the fashion and shoes sectors on high streets in Warsaw. Nevertheless, micro–locations for exclusive fashion and design aimed at selected groups of customers will appear. Apart from the supply of older units, new office investment in the city centre will translate into space availability for this type of retail. For most chain stores, shopping centres will remain the main place to trade.

• Carrefour Express • Costa Coffee • Galeria Wypieków Piotr Lubaszka • Green Caffee Nero • Poczta Polska

The sport, electronics and multimedia sectors have an opportunity to develop on high streets depending on whether they specialise and combine their offer with other types of business. That way they will stand out from competitors who offer mainly mass goods without added value such as advisory and additional services.

• Rossmann • Społem • Starbucks • Subway • Żabka

Goods for children, jewellery, accessories and home accessories will develop on high streets in Warsaw to a limited extent; however such retailers will need a unique idea and a non-repetitive offer. Therefore, the forecast development of individual initiatives as an alternative to chain retail offer is expected. Although the service sector still has a significant share in high–street trade and demand for it is high, the

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Potential development of sectors on high streets

CHILDREN & MATERNITY

MULTIMEDIA

GROCERIES

ACCESSORIES & JEWELLERY

SHOES, LEATHER ENTERTAINMENT & BAGS & LEISURE

ELECTRONIC EQUIPMENT

GASTRONOMY

FINANCIAL SERVICES

FASHION

SPORTS EQUIPMENT

SERVICES

HOME ACCESSORIES

HEALTH & BEAUTY

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Streets with good vibe In Warsaw, as in every city, there are places where we like walking, meeting friends and buying unique things. Welcome to visit seven chosen streets in Warsaw which, according to the authors of this report, are “streets with a specific climate.” Let’s visit Mokotowska Street to buy nice clothes, Francuska Street to drink a cup of delicious coffee and Chłodna Street to go to the hairdresser. If the weather is nice we recommend going for a walk along streets in old Ochota or Żoliborz, and in the evening you should go to the cinema on Narbutta Street and to a night club on Ząbkowska Street.

street length traffic: pedestrian, car and public transport municipal bike station no. of premises selected event 13

1,3 km

Mokotowska Mokotowska

Piękna Street/ Zbawiciela Square 130 Mokotowska Street Day (May)

Mokotowska Street is located in the Śródmieście district and connects Trzech Krzyży Square with Jazda Polska roundabout. It is a street with many residential buildings from the period before the World War II, such as the listed “Krakowiacy i Górale” art eclectic apartment house. In the last few years, Mokotowska Street has been totally modernised (from Trzech Krzyży Square to Piękna Street). Historical buildings are being systematically renovated, new exclusive shops and restaurants are opening and the street is regaining its former shine. Some office buildings such as Zebra Tower, Renaissance Building, Zaułek Piękna, Mokotowska Square, Dom Dochodowy o Trzech Frontach and the Atelier Mokotowska 63 department store as well as over 130 shops, service and gastronomy units are located on Mokotowska Street. The Współczesny Theatre by Zbawiciela Square is also nearby.

SELECTED TENANTS

SECTOR

Burberry Robert Kupisz Rossmann Sense Dubai Mo61 Perfume Lab Ania Kruk Lilou Dyspensa Bazar Kocha bistro & deli Słodki Słony

Tenants’ sector structure (by no. of premises) on Mokotowska Street Zdrowie i uroda

Wyposażenie wnętrz

Wolne lokale

Usługi

Obuwie i galanteria skórzana Multimedia

Moda

Instytucje finansowe

Inne

Gastronomia

100%

0% 1 2% 3%

5%

14%

9%

4%

25%

2% 3%

10%

10%

7%

6%

Source: Colliers International, November 2015

14

1 km

Mokotowska Ząbkowska

Ząbkowska Street (Koneser) 100 Otwarta Ząbkowska (JulySeptember)

Ząbkowska Street, which is one of the most popular streets in the Praga Północ district, connects Targowa Street and Radzymińska Street. There are residential buildings dating from the 19th and 20th centuries as well as old service and postindustrial buildings. This district has become popular in the last few years among artists, who have opened studios, workshops and galleries there. Ząbkowska Street is covered by the revitalisation programme for 2014-2020. In place of the former vodka factory, an officeretail-residential investment is being built called Praga Koneser Center, where the Google Campus has just been opened. There are over 100 shops, service and gastronomy units as well as the Museum of Printing. The neighborhood is home to the famous Różycki Market and the Praga Museum.

SELECTED TENANTS

SECTOR

Rossmann Żabka Sztukateria Galeria sztuki Praga Bar na Ząbkowskiej Himalaya momo Skamiejka W oparach absurdu Łysy pingwin Mucha nie siada

Tenants’ sector structure (by no. of premises) on Ząbkowska Street Zdrowie i uroda

Wolne lokale

Usługi

Sport

Rozrywka i rekreacja Multimedia

Moda

Instytucje finansowe Inne

Gastronomia

Biżuteria i akcesoria Art. spożywcze

Art. dziecięce

100%

0% 1

2%

17%

2%

15%

11%

1%

7%

5%

3% 2%

19%

10%

6%

Source: Colliers International, November 2015

15

937 m

Mokotowska Chłodna

Żelazna Street 100 Karcelak Fairs at Chłoda Street (September)

Chłodna Street, located in the Wola district, connects Elektoralna Street with Towarowa Street. The original buildings were almost completely destroyed during World War II, the rebuilding that has been done has made Chłodna a street of local importance. The granite and basalt cobblestones, the pre-war horse-drawn tram tracks and the place of the former footbridge linking the small and large ghetto have remained as relics of the past. Recently, the street has been revitalised and care has been taken to commemorate its tragic history and expose preserved elements of its buildings. An artistic installation called ’Keret House’ has been created. There are more than 100 shops, service and food points on the street, as well as office buildings such as: Warsaw Trade Tower, Green Corner, Polkat and the Meridian apartment building. There is also the Fire Fighting Museum in the Mirowskie barracks.

SELECTED TENANTS

SECTOR

Fresh market Fryzjerzy na Chłodnej The Esthetic SPA Tryumf Costa Coffee Winosfera Do Woli U Chłopaków Chłodna 25 Bar Kercelak

Tenants’ sector structure (by no. of premises) on Chłodna Street Zdrowie i uroda

Wyposażenie wnętrz Wolne lokale

Usługi

Obuwie i gal. skórzana Multimedia

Moda

Instytucje finansowe Inne

Gastronomia

Bizuteria i akcesoria Art. spożywcze

100%

0% 1 9%

3%

33%

19%

1% 2% 2% 2%

17%

8%

1% 3%

Source: Colliers International, November 2015

16

750 m

Mokotowska Francuska

Walecznych Street 80 The Saska Kępa festival (May)

Francuska Street is located in the Saska Kępa area of Praga Południe and connects the Waszyngtona roundabout with Przymierza Square. The special atmosphere of the street is created by the houses from the interwar period, numerous restaurants and cafes and lots of green areas. Saska Kępa and Francuska Street are a favourite place for artists – Agnieszka Osiecka used to live there, whose monument can be found at the intersection of Obrońców Street. In 2010, the street was renovated and modernised (road, pavements, greenery, lighting and landscaping). Private houses and townhouses were also systematically renovated. There are over 80 shops, service and food points on the street. There is the well-known architectural studio Kuryłowicz & Associates, and the national stadium at Waszyngtona roundabout.

SELECTED TENANTS

SECTOR

Lilou Nail Spa & Day Spa Jean Louis David Carrefour Express Prosta historia Francuska 30 Grycan Baobab Dom Polski Rue de Paris

Tenants’ sector structure (by no. of premises) on Francuska Street Zdrowie i uroda

Wyposażenie wnętrz Wolne lokale

Usługi

Multimedia

Moda

Instytucje finansowe Inne

Gastronomia

Biżuteria i akcesoria Art. spożywcze

100%

0% 1 11%

3%

35%

4%

9%

5%

4%

22%

1% 4% 2%

Source: Colliers International, November 2015

17

1,6 km

Mokotowska Narbutta

Puławska/ Dworkowa Street 30 The Narbutta Day (June)

Narbutta Street connects Puławska Street with Św. Andrzeja Boboli Street. Due to the architecture of residential houses from the interwar period (including the ‘Grey Houses’ estate), the green Słonimski Square and the characteristic building of the ‘Iluzjon’ National Film Archive cinema, it is considered to be one of the most picturesque streets of Mokotów. The ‘Moja Narbutta’ association is very active in encouraging the local community to focus on the most important issues regarding this part of Warsaw. There are over 30 shops, service and food points and a cinema. The street is also home to Ośrodek Karta, which is engaged in documenting and popularising the recent history of Poland and Central and Eastern Europe, several schools and a research and teaching complex of Warsaw University of Technology.

SELECTED TENANTS

SECTOR

Lampy witrażowe Czuła Buła Jednorożec lody tradycyjne

Tenants’ sector structure (by no. of premises) on Narbutta Street Wyposażenie wnętrz Wolne lokale

Usługi

Rozrywka i rekreacja Multimedia

Moda

Instytucje finansowe Inne

Gastronomia

Bizuteria i akcesoria Art. spożywcze

Art. dziecięce

100%

0% 1 3%

17%

3%

14%

11%

3% 3%

6%

3%

26%

5%

6%

Source: Colliers International, November 2015

18

1 km

Mokotowska Tarczyńska

Zawiszy Square 20 The Miron’s poetry Day (June)

Tarczyńska Street, located in the Ochota district at the back of Zawisza Square connects Raszyńska Street with Niemcewicza Street. There are several old residential buildings, including the building where the Tarczyńska theatre, created by the poet Miron Białoszewski, functioned during the 1950s. There is also the Elite Spanish bookshop, which offers a wide selection of books from the best Spanish and Portuguese publishing houses. There is aslo a hunting gallery and the Polish Safari Club, bringing together fans of hunting expeditions and wildlife photography and filming. The ’Tarczyńska 11’ association encourages the local community to focus on the most important issues in Ochota. There are over 20 shops, service and food points as well as the five-star Radisson Blu Sobieski hotel.

SELECTED TENANTS

SECTOR

Elite Spanish bookshop Sztuka umiaru Obroty Rzeczy

Usługi

Multimedia

Inne

Gastronomia

Elektronika

Tenants’ sector structure (by no. of premises) on Tarczyńska Street

100%

0% 1 5%

20%

20%

5%

50% Source: Colliers International, November 2015

19

Inwalidów Square Inwalidów Square 20

Inwalidów Square is located at the intersection of Mickiewicza Street and Wojska Polskiego Avenue in the district of Żoliborz. The ellipseshaped square is home to pre-war housing and its interior, according to the original design, is covered by an area of greenery. This characteristic urban composition and greenery, accompanied by pubs and cafes creates highly walkable area with unique atmosphere. There are more than 20 shops, service and food points.

SELECTED TENANTS

SECTOR

Fawory Winny przystanek Żywiciel

Tenants’ sector structure (by no. of premises) on Inwalidów Square Zdrowie i uroda

Wolne lokale

Usługi

Instytucje finansowe

Inne

Gastronomia

Art. spożywcze

100%

0% 1 4%

8%

36%

24%

8%

12%

8%

LEGEND CHILDREN & MATERNITY

GASTRONOMY

SHOES & LEATHER ACCESSORIES

HOME ACCESSORIES

GROCERIES

FINANCIAL SERVICES

ENTERTAINMENT & LEISURE

HEALTH & BEAUTY

JEWELLERY & ACCESSORIES

FASHION

SPORT EQUIPMENT

OTHER

ELECTRONIC EQUIPMENT

MULTIMEDIA

SERVICES

VACANT

Source: Colliers International, November 2015

20

21

280 SHOPPING CENTRES 44 HIGH STREETS

MAP OF HIGH STREETS AND SHOPPING CENTRES

Are you considering entering the market, planning to develop your chain or restructure it? Do you need data on shopping centres or high streets in Poland? Has a specific retail location sparked your interest? Visit RetailMAP to get the information you want. www.retailmap.pl

Przemysław Dwojak DIRECTOR | CUSTOMER ANALYTICS & SALES STRATEGIES DEPARTMENT [email protected] +48 502 196 091

Dominika Jędrak DIRECTOR | RESEARCH AND CONSULTANCY SERVICES [email protected] +48 666 819 242

Ewa Wasilewska PROJECT MANAGER | CUSTOMER ANALYTICS & SALES STRATEGIES DEPARTMENT [email protected] +48 22 43 41 481

Katarzyna Michnikowska SENIOR ANALYST | RESEARCH AND CONSULTANCY SERVICES [email protected] +48 607 559 587

www.gfk.com/pl

www.colliers.pl