Economy: Retail Spending Subdued, Inflation Below 4%
Retail turnover increased by 0.9% YoY in real terms in May, while cumulative growth over the first five months remained broadly flat at 0.2% YoY. Real wages grew by 2.3% YoY in Q1, although at a slower pace than last year. Despite this, retail spending is expected to improve only moderately, as fiscal consolidation and elevated living costs continue to weigh on households. Inflation reached 3.5% in June and has stabilized slightly below 4%, while unemployment remained low at 3.9%. Household consumption supported GDP growth of 0.9% in Q1, while economic activity is expected to accelerate to 1.9% in 2027, driven mainly by recovering global trade and stronger foreign demand.
Supply & Demand: New Brand Entries Across Segments
Brand entry sentiment remains positive, particularly among discounters and value-oriented concepts, which continue to show strong appetite for the Slovak market. Since the beginning of the year, new entrants included Cinnabon, Normal, Martes Sport and Bookbot, covering a wide range of segments from F&B and drugstore/household goods to sports and books/re-commerce. This indicates that new brand activity in 2026 is not concentrated only in fashion but is becoming more diversified across the retail market.
Further openings are expected in the coming months, including Läderach, Vilgain and Kiko Milano. The planned entry of Vilgain also confirms the continued trend of online-first retailers expanding into physical stores to increase visibility, customer reach and brand credibility. Fitness operators also remain highly active and are expanding, further supporting demand for retail and commercial space.
Pricing: Prime Rents And Yields Hold Firm
Prime rents remained stable compared to the previous quarter, with shopping center rents holding at €100/sq m/month for 50–100 sq m units in prime locations and retail park rents unchanged at €15/sq m/month. Rental growth continues to be closely linked to retail turnover performance, which remains under pressure from subdued consumer spending. Prime yields remained stable across all retail segments, reflecting continued investor confidence in well-performing assets despite a relatively cautious economic environment.
