HalfPrice- new concept of CCC Group
Wpis dostępny jest także w języku: polski
CCC decided to open a new retail chain in the off-price category, which offers, among others, clothes, shoes, accessories, cosmetics, toys and elements of home equipment and decoration. The first shops debuted in Wrocław, Szczecin, Warsaw, Polkowice and Tychy.
HalfPrice shops are a modern concept designed to enrich the offer of shopping malls. The chain’s strategy is based on expanding the range of products, which is characterised by high quality. The brand debut took place in Wrocław’s Wroclavia, Szczecin’s Galaxy, Galeria Północna in Warsaw, Gemini Park in Tychy and Park Handlowy in Polkowice. In addition, openings in Opole, Zabrze, Kielce, Olsztyn and Bielsko-Biała are scheduled for May. By the end of the year HalfPrice will have opened in about 60 locations in Poland. In autumn, however, the Internet platform of the shop is also to be created.
CCC is optimizing stationary shops
Last year, the CCC chain decided to adapt to the market trends and started to change its strategy, which is based mainly on the digitalization of stationary shops. A hybrid formula was chosen, which involves the customer in both offline and online shopping. An additional measure was to reduce the number of outlets, as well as to change their surface area. In 2020, the size of 15 shops was reduced, while this year the change is planned in as many as several dozen locations.
– Creating HalfPrice we used the potential and experience of CCC Group. For a long time we have been optimizing the stationary CCC network. We are reducing the number of shops under this banner, as well as their format to 500-800 m², and at the same time we are working on making them more and more digital. However, this does not mean that we are giving up the lease. This retail space, set aside as part of the restructuring of CCC, is what we are allocating to HalfPrice. This will allow us to increase revenue per square meter, and to provide customers with a rich, interesting offer – said Karol Semik, CCC Group Expansion Director.
PMR Expert’s view:
Senior Retail Analyst
The off-price concept is very well received by consumers. In Poland, the new CCC group chain will compete – to different extent – with outlet centres, non-food discount shops as well as with Flying Tiger or TK Maxx chain shops. It is because of the announced offer from many segments, the availability of branded products (here a lot will depend on the choice of brands) and the first openings in shopping centres that the new concept of the latter chain (which at the end of 2020 had 46 shops in major cities) seems to be the closest at the moment. In turn, looking at the number of outlets of non-food discount stores (a total of about 2,025 locations at the end of 2020), one certainly has to reckon with competition from this channel.
The sector of non-food discount stores in Poland has expanded rapidly over the past decade, with the number of such stores growing by more than 100 annually. Non-food discounters rely on fast expanding retail footptiny, low prices, diverse assortment. They have short and variable offers, which encourage frequent visits to the shops. As a result, over 8 in 10 Poles know the Pepco chain, 57% know KiK and 32% know TXM, according to a survey conducted by PMR in April 2021. The three more recent entrants into the country’s non-food discount store sector have also done well to establish themselves in the minds of Polish consumers, with almost 3 in 10 of our respondents saying they know Action, and roughly one in five professing familiarity with Dealz and Tedi.
It is worth noting that Lidl has recently opened its first non-food outlet. All these concepts meet the price sensitivity of consumers, which increases in times of uncertainty.
The new concept gives the CCC group a chance to diversify the product portfolio and to become independent from the demand only for shoes and to revive stationary sales, to strengthen the offline part of the CCC group’s business.