LVMH, an international group with over 50 luxury brands, such as Moet & Chandon, Louis Vuitton, Fendi, Christian Dior Perfume and Champagne, is planning to expand into Poland. Its first outlet is to appear in the Bracka department store, in Warsaw. LVMH is to open a Louis Vuitton boutique as well as a multi-brand store.

Likus family from Krakow, hotel owner and distributor of Diesel, a clothing company, is the investor. The Wolf Immobillien Polen, set up by the Likus family together with a western investment fund, has already started the construction of the exclusive department store.

LVMH’s entry to Poland, if confirmed, is a sign that the country has become more attractive for upmarket brands, thanks to a healthy economic situation. We can expect other luxury brands to follow suit in the near future, as a number of them are still absent from the Polish market. The success of LVMH as well as further improvement in Poland’s economy and the wealth of Polish consumers might tempt the to-date reluctants to start doing business here.

Opening these brands in Poland might be difficult because of a shortage of proper retail space. Retailers from this segment are not interested in launching boutiques in shopping centres but rather look for prestigious locations on prime streets, the supply of which is limited.

Luxury products, such as clothing, perfumes or accessories, are much more expensive in Poland than elsewhere in Europe. The opening outlets of upmarket brands may lead to lower prices, but one should not expect any major price cuts.