Poles prefer petite

Small-format grocery stores play a more prominent role in Poland than supermarkets, according to PMR's Grocery Retail in Poland 2007 report. Large-scale stores are becoming more popular, however the market is focused on the integration of small shops. There has also been notable growth in upscale supermarkets which offer a larger choice of premium products.

Supermarkets, hypermarkets and discount chains, which appeared in Poland over 10 years ago, have so far failed to dominate the sector, according to Marcin Szaleniec, a retail analyst at PMR Publications. Small stores represented nearly 70 percent of total grocery retail turnover in 2007, while the figures for for hypermarkets, supermarkets and discount stores amounted to 12.2, 13.2 and 6.5 percent respectively, lower than their counterparts in the Czech Republic or Hungary.

However, in order to improve the logistics situation and reduce supply costs - improving competitiveness against large supermarkets - the small-format sector is having to consolidate. The largest integrator of small retailers, Emperia, incorporated eight chains into its group in 2007.

Supermarket chains have also become active in the convenience sector. Carrefour launched its Carrefour 5 Minut store in the second half of 2007 and Tesco is planning to open Tesco Express this year. According to PMR analysts, the convenience business model comprises the perfect response to the needs and preferences of the average Polish consumer, who tends to shop several times a week but only purchase a few items each time.

The upscale supermarket sector, which includes shops such as Piotr i Paweł and Bomi, also saw increased activity, with 30 new stores opening compared with only nine in 2006. In addition, Emperia opened three new upmarket stores titled Stokrotka. For its part, Bomi took over 20 Rast supermarkets  and plans to make further acquisitions. Its goal is to have about 100 stores by the end of 2009.

Anna Kapica-Harward