Foreign Investment Expected in Polish Retail Soon

Poland's retail industry is expected to grow rapidly on account of rising investments by global retailing giants in wake of immense potential in the sector.

The leading retail chains worldwide are planning to make investments in Poland despite the ongoing global recession, as reported by polishmarket.

France's Carrefour plans to open four hypermarkets, 50 local stores and numerous supermarkets under the name of Carrefour Express. Biedronka, the leader of Polish FMCG market, is planning to launch about 150 stores in the current year. According to the estimations of Roland Berger, discount chains are expected to grow continuously in Poland, with the Polish spending expected to increase to nearly PLN 23 Billion (€4.8 Billion) by 2010 compared to PLN 16.8 Billion (€3.5 Billion) in 2007.

The boom in the growth of Polish retail industry is chiefly attributed to its population size, its economic health and the 44-year long shopping-starved term it faced under the communist reign.

The Polish retail industry has been transforming at a rapid pace. First shopping center in Poland opened in 1993 and six years later, Warsaw alone accounted for around 2.3 Million square feet of retail space.

With a population base of 38 Million, Poland is one of the most populated countries in Eastern Europe. Moreover, the country is dominantly urbanized, with seven cities having a population of 500,000 residents each. This density has largely supported the creation of a ready market for the retail stores and hypermarkets emerging in the downtown areas. 

All kinds of retail stores are currently either under-construction or are planned in the country, considering the sophisticated nature of the Polish market and favorable market conditions. Poland's entry to the European Union, which dismantles the trade barriers to a larger extent, makes the country's retail sector more optimistic and conducive for foreign investment.

According to a Research Analyst at RNCOS, "Although the Polish retail sector has been growing at a blistering pace, the credit crunch has decelerated the growth rate for the past few time. Infrastructure is yet another big problem for the industry. Lack of warehouse and distribution facilities has been hindering the growth of Polish retail sector, though the scenario is fast changing with the construction of these facilities. Roads are also a big obstacle. Although the government has prioritized the construction, modern highways are still a rare sight in the country."

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