Grocery chains to develop small stores in Poland

2010-01-20

The largest domestic grocery retailers are expected to launch as many as 1,500 small stores in Poland in 2010, and the total number of new units of this kind might reach a few thousand. An increase in the number will be achieved mainly at the expense of large stores owned by foreign chains operating in the country. This is because most Polish consumers still prefer to do their shopping at small stores in their neighbourhoods rather than modern retail establishments such as supermarkets and hypermarkets.

According to a survey commissioned by the Warsaw authorities, 68% of the capital’s residents said that their favourite shopping locations are small stores. Supermarkets and hypermarkets were indicated by 41% of respondents, according to a report in Dziennik Gazeta Prawna.
The Polish food market is very fragmented – there are almost three times the number of grocery stores in Poland than there are in Germany. Small and medium-sized stores account for around two-thirds of the food product retail market, and supermarkets and hypermarkets for only a quarter.
The convenience store format enjoyed the most rapid rate of growth during 2009, and this trend is likely to continue in 2010. Zabka, abc and Groszek launched around 1,000 new franchise units in total in 2009. Zabka Polska, the operator of the Zabka chain, which consists of almost 2,200 stores, insists that its growth potential in Poland is substantial and estimates that the market can accommodate over 7,000 units under this brand name. Zabka Polska also intends to develop Freshmarket, its new chain. The Eurocash group, which operates the abc chain, claims that the 2009 growth rate will be maintained and that this will result in around 500 new establishments.



Discount stores were the second most prominent format in terms of sales growth. According to our report Grocery retail in Poland 2009. Market analysis and development forecast for 2010-2012, sales via the discount channel in 2009 grew by 18.5% year on year. The estimated share of the grocery market accounted for by the discounters increased from 7.7% in 2008 to 9.1% in 2009. Discounters perform well during an economic crisis because clients tend to look for lower prices.
The expansion of domestic chains could pose a threat to independent retailers, many of which could face a choice of joining a network or going bankrupt. The operators of franchise chains insist that joining such a chain is a way of improving a retailer’s position in the face of growing competition.




Mateusz Malicki
Senior Business Editor
PMR Publications
mateusz.malicki@pmrpublications.com