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BMI View: Croatia is finally emerging from a six-year long recession;
however, we are expecting the recovery to remain slow and fragile. High levels
of unemployment, particularly among the young population, will restrict income
growth and prevent an important consumer group from engaging fully in the retail
sector. Potential political instability combined with a poor fiscal situation
will place additional constraints on the retail sector. Despite, this we are
expecting tourist arrivals to continue to rise throughout our forecast period.
Key Views & Developments
-The Mall of Split officially opened the public on the 3rd of March 2016 in the
city of Split. UKbased retailer Debenhams expects open a 2,500 square meter
store in Westgate Shopping City shopping centre in Zagreb. The launch is planned
for September 2016.
-IKEA has announced plans to invest EUR88mn in a 50,000 sqm designer outlet
complex located in the east of Zagreb. The Croatian Financial Agency (FINA) has
reported that the top ten commercial retail chains in Croatia generated an
income of USD5.3bn in 2015, a strong increase from the previous year.