Slovakia’s retail park market thriving despite E-commerce growth

In an exclusive CIJ EUROPE interview with Andrej Mardiak and Lukáš Šarközi, Partners at Mayflower Slovakia, exciting developments in the country’s retail park sector were discussed. With several new projects on the horizon, it’s clear that Slovakia’s retail landscape is expanding in response to changing consumer habits and market demands.

Mayflower has been actively involved in various shopping park projects throughout Slovakia. Mardiak highlighted five major developments scheduled between March 2024 and March 2025. These include the recently completed Spektrum Ružomberok project, a 5,000 square meter retail park, as well as smaller projects like one in the city of Šaľa. Future openings include Spektrum Šamorin and the reconstruction of hypermarket chains in Nové Zámky and Lučenec, rebranded under the Spektrum name. Additionally, a second phase is underway for the retail park in Námestovo, expanding to 10,000 square meters, with more expansion plans in Rimavská Sobota and Levice.

Mardiak also teased an acquisition of a project currently in its construction phase, although he remained tight-lipped on specifics, as details are still under negotiation.

The rise of discount retailers and shifting consumer behavior have fueled the growth of retail parks in smaller cities across Slovakia. Mardiak and Šarközi explained that consumers are increasingly seeking convenience, avoiding long journeys to major shopping centers and opting instead for local retail parks in smaller cities. This trend is especially prevalent in towns with populations between 5,000 and 15,000, which were previously overlooked by developers.

“People don’t want to travel 30 minutes for shopping anymore,” remarked Šarközi, “and they welcome local retail schemes.”

Mardiak noted that the demand for discount brands is growing, and with it, the size of retail parks has increased. What used to accommodate eight tenants in a 4,000–5,000 square meter space now only needs four to five tenants, as brands like Action, Miller, and Woolworth have entered the Slovak market, each requiring larger retail units.

Both executives stressed that sustainability is a critical goal for Mayflower. “Almost 50% of our portfolio comes from reconstructions and redevelopments,” said Mardiak, noting that older buildings are being revamped with modern materials to meet higher environmental standards. In addition, Mayflower is shifting to electricity-based systems with low energy consumption and installing more sustainable features, such as energy-efficient glass frontages.

According to Šarközi, this focus on sustainability not only aligns with environmental goals but also offers a business opportunity for Mayflower as demand grows for eco-friendly retail spaces.

Mayflower takes a strategic approach when determining the ideal tenant mix for its retail parks, conducting extensive research to assess local market demand. “You need to meet the local requirements,” Mardiak emphasized. This includes analyzing the price levels and brand popularity in a region before proceeding with development.

By tailoring the tenant mix to the local population, Mayflower ensures its retail parks provide an attractive range of shopping options suited to the community’s needs.

Mardiak highlighted two key challenges currently facing the retail park sector: the slow permitting process and the potential for market saturation. “Getting permissions takes a huge amount of time, and time is money,” he said, pointing to the financial implications of these delays.

The risk of market saturation is also a growing concern. While there are still opportunities in Slovakia’s smaller cities, Mardiak acknowledged that not every retail park project will be successful. Thorough research and patience are needed before investing in new developments.

Despite the rise of e-commerce, both executives believe that retail parks remain resilient. “These projects are like crocodiles from the dinosaur era,” Šarközi quipped, highlighting their ability to withstand market changes. Retail parks cater to fast, convenient shopping, allowing customers to park, shop, and leave quickly—a distinct advantage over the time-consuming experience of larger shopping malls.

While e-commerce continues to grow, retail parks are proving to be complementary, offering an environment for impulse purchases that online platforms struggle to replicate. According to Šarközi, retail parks’ fast shopping philosophy means they still attract significant foot traffic.

Looking ahead, both Mardiak and Šarközi see a bright future for retail parks in Slovakia. While the market may be approaching saturation, there are still opportunities in both large and small cities. Mayflower intends to remain a key player in this space, continuing to shape Slovakia’s retail park landscape.

The Partners stressed the importance of careful planning and research in ensuring the long-term success of retail park projects. Retail parks, they argue, are not only resilient but have the potential to become valuable trophy assets, especially as they continue to outperform more vulnerable sectors like shopping malls in the fight against e-commerce.

© CIJ EUROPE