Biedronka and Lidl are leading the retail chain market
The Polish FMCG market was worth over 275 billion zloty in 2023, the value of which was predominantly influenced by food. More than a dozen retail chains operate in the Polish retail market. These chains have responded to the changing market dynamics and consumer behavior by implementing various strategies. For instance, Biedronka, Lidl, Auchan, Kaufland, Carrefour, and Dino have all focused on expanding their online presence and offering more affordable products to cater to the growing number of budget-conscious consumers. The number of franchise stores is also increasing. Eurocash Group, which operates in the wholesale and retail segments, dominates in this field. The popularity of franchised stores is also on the rise. Poland's most popular franchise chains include Żabka, Sklep Polski, abc, Lewiatan, and Delikatesy Centrum.Undoubtedly, Biedronka is the market leader in terms of revenue and number of stores, a retail giant owned by the Portuguese company Jeronimo Martins. In 2023, Biedronka's sales reached a staggering 85 billion zloty, more than two times the sales of Lidl and nearly six times that of the Kaufland chain. With a network of 3.5 thousand stores across Poland, Biedronka has established itself as the most extensive retail brand in the country. In comparison, Lidl had 900 outlets in 2023.
After long declines, retail sales show increases
The year 2023 was not kind to consumers, mainly due to high inflation. And although prices slowly began to stabilize, consumers were still cautious about their spending. Considering constant prices, i.e., those adjusted for inflation, retail sales in December fell by 2.3 percent year-on-year, which was a surprise given the busy Christmas shopping season. The situation began to improve with the new year. In January 2024, private consumption rebounded from the negative trend and returned to growth, maintaining a solid 6.1 percent increase in March 2024. This rebound was driven by rapidly rising real wages and a low unemployment rate, thus improving consumer sentiment.The upward trend is expected to continue as the year progresses, with retail sales projected to grow by at least four percent in 2024. This growth is likely to be driven by the continued recovery of the economy and the easing of inflationary pressures.