Polish grocery market to grow by 1.5pct in 2013 - PMR
September 23, 2013
The Polish grocery market slowed down in the first months of this year, but an improvement can be expected in the second half of 2013 in line with a general economic recovery, PMR’s forecasts show.
In 2013 as a whole, the Polish market for grocery products will top PLN 233billion, an increase of 1.5% compared with the year before, according to a new PMR report, “Grocery retail in Poland in 2013. Market analysis and development forecasts for 2013-2016”.
A PMR survey carried out in July 2013 showed that fully 67% of adult Poles thought their spending on grocery items had increased as compared with a year earlier, with one in three describing the increase as significant. In the previous wave of the survey, conducted in October 2012, the percentages were 72% and 45%, respectively. This indicates that growing expenditures on necessities remain a big problem.
As a result, Polish consumers are becoming increasingly deliberate and thoughtful in their purchases, trying to manage their budgets in a rational way. One in two respondents in this year’s survey said that they had changed their buying habits in the recent past, and one in three admitted that while they bought similar quantities than a year ago, they were paying more attention to prices.
Retailers are taking note of these trends. They are increasingly building their long-term promotional campaigns around low prices, and are giving more importance to private label products, which are highly popular among consumers due to attractive prices.
In the early part of 2013 many retail chains recorded declines in sales revenues. Sales at Tesco, for example, slumped by over 8% in the first quarter. The slowdown eventually caught up even with Biedronka. While the discounter managed to keep its Q2 sales growth in positive territory, like-for-like sales were up by a meagre 2%, the worst result in a long time. The situation can be expected to improve towards the end of 2013, but the growth rates will not significantly exceed levels seen in recent years. According to our forecasts, in 2013 as a whole the market will grow by just 1.5%, to PLN 233.5bn.
PMR is a market research and consulting company active within over 25 countries of Central and Eastern Europe.