International brands, property investors and domestic fashion chains compete for space on Thessaloniki's flagship retail strip, Tsimiski Street. Despite subdued consumer spending, the city's high street continues to attract capital and multinational interest.
A wave of leasing, store refurbishments and strategic property sales is transforming the scene, with many multinational brands already leasing space and outfitting stores. Meanwhile, some brands are reportedly conducting extended searches for the ideal location, particularly prime corners along Tsimiski, according to local market observers.
Among the most closely watched players is Polish retail group LPP. The company already operates Sinsay in Greece and is preparing to introduce Mohito to Thessaloniki, with a store at 28 Agias Sofias pedestrian street set to become the brand's first in the country. LPP is also looking to bring its flagship label Reserved to the Greek market through a physical store in Thessaloniki, having so far operated only online.
Described by retail insiders as the "Polish answer to Zara", Reserved has reportedly been scouting Tsimiski Street for a suitable site. A former Zara unit at the junction of Tsimiski and Karolou Dil was considered, but it ultimately became the new home of dynamic Greek fashion chain BSB, whose owners also acquired most of the building in a notable transaction last year.
The same landmark property had drawn interest from the German fast-fashion chain New Yorker, which established New Yorker Greece in 2025, according to official records. While its first Athens store on Stadiou Street is expected to open soon, the company continues to consider Thessaloniki as a potential expansion target.
H&M Group expands Thessaloniki portfolio with COS launch and ARKET plans
Swedish group H&M is also expanding its footprint. In early March, it is set to open Thessaloniki's first COS store, its premium "Collection of Style" brand, on the corner of Aristotelous and Tsimiski. Market sources say the group is also assessing the city for ARKET, a newer label offering womenswear, menswear and childrenswear. US sportswear retailer Foot Locker, already present at Mediterranean Cosmos mall, is reportedly exploring a move into the city centre, though no suitable premises have yet been secured.
Property transactions on Tsimiski remain rare, and availability is described as almost non-existent, with typically only one to two sales per year, usually involving units above 150 sq m. In 2025, at least two high-profile buildings changed hands as investment assets, with existing tenants remaining in place under long-term leases.
Yet beneath the high-profile brand moves, pressures persist. Smaller and medium-sized retailers continue to struggle with weak consumer demand, competition from e-commerce, and high rents that many describe as a noose. At least 10 shops along Tsimiski are currently vacant, often because landlords are reluctant to lower their asking prices.
By Lina Tsireka - adapted from Greek by Vassia Barba
