fbpx
Market News

HoReCa market on the growth wave

The HoReCa market in Poland is worth nearly PLN 28.6bn according to PMR analysis, which means that in 2017 it grew by over 6% year on year. Not only was it the third year of strong growths, but also in 2018, due to the good condition of the Polish economy and the growth of domestic consumption, forecasts for this market are very good. This is confirmed by the data presented in PMR’s report “HoReCa market in Poland 2018. Market analysis and development forecasts for 2018-2023”.

Considering that clothing or footwear purchases are most often made in chain stores located in shopping malls, it is not surprising that most people shopping on Sundays, regardless of frequency, live in the largest cities (70%), where access to these stores is highest.

A positive attitude towards Sunday shopping is also supported by a higher level of education and income, but is not differentiated according to gender.

On 22 November 2017, the Sejm passed a law restricting the possibility of trading on Sundays. The rules entered into force on 1 March 2018 and, according to them, in 2018 shops will be allowed to open on the first and last Sunday of the month; from 2019 only on the last Sunday and from 2020 retail trade on Sunday will be completely banned, with some exceptions (e.g. petrol stations, railway stations, small owner-operated shops).

For those who have so far bought shoes or clothes on Sundays, the trade ban will significantly change their shopping habits. The dominant two strategies to adapt to the new conditions will be to postpone Sunday’s purchases to Saturday (53%) or business days (not the same as Saturday). here sometimes from Monday to Friday, due to the different nature of the respondents’ work). Nearly two out of 10 respondents said that they would start buying more often online, while 7% would respond with a reduction in their consumer needs.

The most digitalized form of response was chosen by the youngest respondents. In this group alone, online shopping was the strategy chosen more often than shopping on working days, the most popular among people aged 55+, who in turn probably have more time on working days due to retirement, and prefer to spend weekends in a different way than shopping.The tendency to reduce clothing and footwear purchases decreases with the increase in the total household income. Education is not a factor clearly differentiating the way of adaptation, although a few characteristic features can be observed – people with secondary education more often declare that they will reduce their purchases of shoes and clothing, with primary education – they less frequently mentioned online shopping as an alternative.

The players on the clothing and footwear market are afraid to reduce their turnover. They also anticipate the need to reduce the number of employees in showrooms (the number of store staff is converted into the number of trading hours). In addition, the minimum wage has recently been increased. Retailers also expect a number of other negative effects: a decrease in cross-border sales and tourist traffic, lower turnover of fashion outlets in tourist cities (this is a group of weekend customers who will not come back for shopping during the weekend), a decrease in the comfort of shopping on other business days (e.g. overcrowding of parking lots). The ban on Sunday, as compared to other amendments and the in the current market environment (price pressure), results in high uncertainty.

Leave a Comment

Your email address will not be published.

You may also like

Market News Trends

Medium price segment dominates clothing and footwear market in Poland

post-image

The Polish clothing and footwear market in Poland is dominated by products from the mid-price segment, which currently accounts for nearly half of the market. Despite the fact that the share of the average price segment in the market is slightly falling. However, its position is currently unwavering.

The medium price segment dominates clothing and footwear market

The medium-price segment is the largest segment of the clothing and footwear market in Poland – currently it covers almost half of the market. Not surprisingly, considering the prevalence of purchases in the so-called chain stores, whose offer is located mainly in the middle price segment. PMR’s results show that if the respondent bought clothes in a stationary store in the last 12 months preceding the survey, in almost 8 out of 10 cases it was a chain store in a shopping mall.

News Personnel Changes

New vice president of TXM

post-image

At the end of May, Krzysztof Bajbus was appointed as vice president of the Management Board of TXM in restructuring. After nearly 10 years he returned to the fashion industry.

The supervisory board of TXM in restructuring appointed Krzysztof Bajbus to the position of vice president. He has been holding a new position since 30 May 2019.

Earlier career

Krzysztof Bajbus is a graduate of the Warsaw School of Economics with a degree in finance and banking. He has over twenty years of experience in running and developing large retail chains. In the years 2007-2017, he was associated with Euro, the chain of electronic shops. His career has also been connected with the fashion industry, cooperating with Galeria Centrum, a nationwide chain of clothing stores. He held, among others, the position of operations director.
In…

Read More
Law Market News Trends

New retail trade tax

post-image

The Court of Justice of the European Union ruled that the European Commission’s decision to ban the introduction of the retail sales tax in Poland was wrong. This means that it is more likely that the tax, which is currently being postponed from one year to the next, will be effective from 1 January 2020. Is this certain? Not yet, because there is still time for an appeal against the judgment. The European Commission has two months to take such steps, but the appeal may concern the formal aspects of the judgment, and not its content. Tax issues most often go to the second instance, which may take months. In addition, the final outcome is not yet determined.

What is a tax?

The introduction of the tax will have a negative impact on the level of profits made by retailers. According to the current draft, which was adopted by the Sejm in…

Read More
Market News Trends

Apart leader at the jewellery market

post-image

The Apart brand closed last year as a sales leader in its industry, and its position is now unwavering. This is the result of the most developed distribution in the jewellery and watches category. The brand’s products can already be bought in over 200 stores all over Poland and in the company’s online store.

The company has been present on the Polish market since the 1970s. The company is a leader on the Polish market both in terms of the value of sales and the number of stores. In 2017, its sales revenues amounted to over PLN 655 million and were 4.1% higher than in the previous year. What is more, the company’s revenues over the last five years have been growing at the average level of 6.8%. For several years, the company has been dynamically developing its sales network. At the end…

Read More
Consumer Research News Trends

Why are we buying organic food?

post-image

Nearly every fifth Poles declares buying certified organic food. The development of this market is positively influenced by the popularity of healthy and ecological lifestyle, growing popularity of diets, e.g. vegan or vegetarian, and the growing wealth of the society. What is more, more and more consumers are able to afford to buy more expensive, but natural and certified products. Moreover, more than half (55%) of respondents buying natural cosmetics also buy healthy food. It is clear that buying organic food and natural cosmetics is connected with choosing a specific lifestyle.

According to a survey conducted by PMR in December 2018, 23% of Poles buy organic food. Women buy organic food more often (27%) than men (19%). More often than on average, organic food is purchased by people with higher education (19 p.p. for the answer yes, in comparison to the general population)….

Read More
Market News Trends

Retailers reduce plastic packaging

post-image

Poles, reaching for products from shop shelves, pay more and more attention to the packaging in which they are located. More and more often they choose products that are ecologically packaged or sold loose. In order to meet these expectations, retailers strive to reduce plastic packaging, or to enable customers to pack their products in their own boxes.

Tolerance of misuse of disposable plastic is decreasing. The zero waste philosophy also contributes to the promotion of new, more environmentally friendly solutions. This is due to the fact that food packaging now accounts for 60-70% of the total packaging market. Networks are making changes in this area dictated by consumer expectations. By 2025 100% of Kaufland’s private label packaging is to be recyclable, and the Polish branch of Lidl wants to reduce the use of plastic packaging by 20%.

What…

Read More