A war for convenience stores

Ruch has officially declared that it intends to launch its first test convenience store this spring. Meanwhile, Kolporter, - its rival in the press-distribution market - has been operating its "Meta" network of seven shops for over a year and plans to expand to a few dozen outlets this year.

"Ruch and Kolporter both have established distribution departments and relationships with key suppliers. They are capable of addressing an urgent need to consolidate traditional trade around a couple of customer-driven concepts, develop stronger structures and consistent store formats," says Agnieszka Górnicka, president of Inquiry market research.

"Saturation of Poland's retail market is about 40-50 percent - still low in comparison with Western markets," claims Piotr Sobków, board member and director of sales and sales outlets at Ruch. "Consolidation is in the final stage. We'd like to be an active player in this game, while continuing to grow organically," he says.

Ruch can bank on the strength and recognizability of its brand as it looks to open its own chain of shops, each between 50-90 sqm in area and offering a range of fast- moving consumer goods and an assortment of press titles. This "7-eleven" model is not new to the region - Żabka's franchise of 1,700 outlets already dominates the market and, with at least 200 new stores cropping up yearly, it won't be easily beaten.

Last week, Rzeczpospolita reported that Ruch was looking to take over Żabka but the rumor has since been refuted by Żabka's spokesperson.