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With Poland caught in the midst of a political storm that could, some analysts suggest, lead to the country’s eventual exit from the European Union, its grocery retail sector, led by market leader Biedronka, remains a rock of stability in otherwise turbulent times.
Part of Portugal’s Jerónimo Martins Group, Biedronka is planning have around 3,050 stores in Poland by the end of 2020, up 225 stores from its current network, according to recent forecasts by Haitong Bank.
Sales are projected to rise 7% to more than PLN 56 billion in the same period.
Founded as recently as 1995, and with a name that translates as ‘ladybird’, Biedronka is Poland’s largest private employer, employing over 65,000 and operating 2,800 stores in more than 1,000 towns and cities.
However, Polish retail is not without its challenges. The country’s retail market is highly saturated, with over 135,000 grocery stores overall, according to 2016 figures by Euromonitor International. Global grocery players such as Lidl and Carrefour are vying for more influence as Polish consumers’ disposable incomes are picking up pace.
But Biedronka is working hard to hold onto its throne.
Wage Boosts
With higher aspirations comes more responsibility, and the retailer is reinforcing its growth strategy by investing in its staff.
Last year, the retailer added more than 5,000 staff, and just last week it announced its fourth wage increase in four years.
It said it will raise wages across Biedronka stores and distribution centres, ranging from PLN 200 to PLN 550, depending on staff members’ location, seniority and role within the company.
"We want to appreciate the contribution of our employees to the development of the entire company," Biedronka personnel director Jarosław Sobczyk said.
Crowded Market
Biedronka holds a 20% share of retail value sales in Poland, according to Euromonitor International’s Grocery Retailers in Poland report (from December 2016). That’s more twice the amount of Lidl, which comes in at second place with a 7% share of sales.
Euromonitor attributes Biedronka’s popularity to the fact that in the minds of consumers, it offers the lowest prices in the marketplace.
“A widespread chain of stores, convenient locations close to residential neighbourhoods and a vast choice of both good quality private label products and branded goods mean that Biedronka is the first choice store for many consumers when shopping for groceries,” according to Euromonitor.
The retailer has also focuesd on expanding its assortment of branded products and premium goods to change its image from discounter to supermarket, the analysts said.
With forecast GDP growth and additional support forecasted from the ‘Rodzina 500+’ (Family 500+) government programme, Poles are likely to increase their spending in grocery retailers in the years to come - and Biedronka is well poised to get the biggest slice of the pie, regardless of the ongoing machinations of the country’s political system.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Kevin Duggan. Click subscribe to sign up to ESM: The European Supermarket Magazine.
