10.4 Conclusions

The evolution in Polish retail reveals a combination of two contrasting trends. On the one hand, there is a dynamic development of large-surface units mainly resulting from foreign investments made by the largest European networks with strong presence in Poland (Table 10.2).

Owing to this process, the Polish market is one of the most competitive in Europe, and it forces specific companies to use more innovative strategies of development.

On the other hand, despite the strong foreign competition, one may also observe a very clear presence of SMEs on the market, who tend to operate as independent businesses or associations and companies which are undergoing a gradual integration process. In 2001, there were 117 200 grocery stores in Poland: 136 operated as hypermarkets, 1900 as supermarkets and discount shops, 30 200 as grocery shops (large and medium), and 85 000 as small grocery shops. Paradoxically, the number of small grocery shops is not declining but remains at a relatively stable level.

The share of modern forms of distribution (hypermarkets, supermarkets, discount stores) amounted to 29 per cent of the food sales in 2002. Nearly 71 per cent of the turnover ( Handel , 3/2002: 16 “17) continue to be sold in traditional grocery stores of various sizes (including kiosks and petrol stations ) owing to traditional customer habits. It can be expected that traditional distribution channels will keep a rather strong position in Poland but competitive pressure will lead to more integration and consolidation in the long run. The Polish retail sector is bound to undergo many radical adjustments affecting both large international retailers and small and medium size retailers which search for new ways of operating within professionally managed and integrated chains. The expected integration will particularly force SMEs to adopt management practices and technologies (IT and logistic systems, modern merchandizing and selling techniques) in order to keep pace with international competition. Polish SMEs seem to be increasingly aware of the challenges ahead.

References

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