Polish grocery retail market growth to accelerate in coming years - report
August 25, 2014
Following weak growth of the grocery retail market in Poland, which stood at PLN 234 billion in 2013, the sector is expected to improve in the forthcoming years, a report by PMR market research shows.
The grocery retail market in Poland practically stagnated throughout 2013 following growth of less than 2%, the report “Grocery retail in Poland 2014. Market analysis and development forecasts for 2014–2019” reads. On the other hand, it emphasizes that the grocery retail sector showed resilience to economic shocks as it was one of just a handful of markets that have not contracted since 2008.
The authors of the report say the sector should improve in the forthcoming years, adding however that there is currently no evidence that the market will expand significantly (i.e. at a rate of over 5%). “Our projection is correlated with Poland’s GDP outlook. Our forecasts indicate that the market will expand by some 20% in the next five years”, analysts say.
According to the report “the market’s growth will be driven, on the one hand, by the largest retail chains’ capital spending on new stores (stronger competition among retailers should translate into intensified price-based competition for consumers’ wallets; also, the economies of scale should result in retail chains’ less costly purchases from producers), and on the other, by the improving condition of household budgets across Poland”.
The survey on which the report was based also shows that stores in the neighborhood enjoy the rising popularity. This on the one hand is due to the fact that shoppers want to save time, and on the other, to the proximity of numerous discount stores, supermarkets, convenience stores and compact hypermarkets.