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Polish Retail Sales Fighting Melting Global Economy
Nov 24, 2008

Retail sales in Poland registered an increase of 11.6% in September 2008 due to high demand from domestic consumers and increasing disposable income.

According to the retail sales data given by the statistics office, due to higher demand, the Polish retail sales increased 11.6% in September 2008 on YOY basis, as reported by
forbes.

In August 2008, retail sales in Poland went up by 7.7% from August 2007 and 1.8% higher from the previous month. However, the growth in retail sales for September 2008 was expected at 11.7%.

The main factor that induced growth in the Polish retail sales is rising disposable income and changing consumer behavior. Boosting consumer confidence and increasing income levels are also offering sufficient growth opportunities to the retail industry. So encouraged by the high demand, retailers are offering better services and supplies to their consumers. Consequently, the retail sales are rising in the country.

The Polish retail industry is controlled and regulated by its government. The central planning controls nearly everything, from store location and staffing to distribution and pricing of the retail products. This ensures better quality and services to consumers.

Moreover, robust domestic demand, depreciation in the national currency, which increased the import prices, and the stable interest rates are changing the global trend for lower rates. Also, the country is enjoying a relatively firm position in comparison to other neighbor countries like Ukraine, Belarus and Hungary.

The other reason for growth in these opposite economic conditions is that at the current saturation point in the retail industry, the retail companies in Poland are expanding their businesses by adopting the consolidation policy, thus, trying to successfully combat the current financial position.

Additionally, in the tough time of financial crisis in the neighboring country Hungary and various other emerging markets, which have struck the ex-communist member states of the European Union, the Polish economy showed symptoms of resilience.

According to a Research Analyst at
RNCOS, “Despite the global economic meltdown, Poland recorded growth in its retail sales during September 2008. Although the slump in the leading markets of Western Europe would retard this growth, the domestic consumers’ confidence is likely to counterbalance the predicted decline.”

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