MfD: Luxury brands expanding to Prague

Prague, Oct 6 (CTK) - More and more luxury foreign brands are opening their exclusive shops in Prague where "they can scent money," the daily Mlada fronta Dnes (MfD) writes Saturday.

Prague may soon become an attractive shopping destination for well-off tourists similarly like Wien and Milan, the paper adds.

However, Czechs make up about a half of customers of luxurious shops that are mainly concentrated around Parizska (Paris) street in the Old Town of Prague.

"Most tourists include at least a half day for shopping (in Prague) in their programme," Jiri Macas, regional manager of Global Blue mediating VAT return for tourists outside the EU, told MfD.

The Chinese spend the highest sum (an equivalent of some 15,000 crowns) per one shopping in the Czech Republic, followed by the Taiwanese, MfD writes.

It is worthwhile for big brands, such as Burberry, Cartier, Dior, Hermes, Gucci, Louis Vuitton and Prada, to enter the Czech market directly and not via a franchise or distributors, MfD says.

It recalls that Tiffany jeweller's opened its exclusive boutique in Parizska in Prague last month and the legendary shoemaker Jimmy Choo will follow.

Moreover, Louis Vuitton and Burberry are to open their own three-storey stores in the Old Town. So far both brands have had smaller shops in Parizska.

According to information from the market, the Burberry department store is to be opened at the turn of October and November to profit from the season before Christmas, MfD notes.

Chanel is still missing in the Czech market but the brand is allegedly to open a shop in Prague soon, MfD says.

Smaller competitors welcome the expansion of luxurious giant brands since they send a signal to others that there is a commercial potential in Prague, MfD writes.