Market

Another good year for DIY articles in Poland – market growth of over 5% in 2017

Records in the residential construction market as well as renovations had a positive impact on the overall DIY market in Poland (total sales of products necessary for construction and renovation, decorative products, garden products and tools, where the end customer is both an individual and an institution or a company), which increased by 5.2% to PLN 54.6 billion, according to data from the latest PMR report DIY market in Poland 2018. Market analysis and development forecasts for the years 2018-2023.

The DIY market is flourishing, as shown on the one hand by the results of the biggest players, such as Castorama, Leroy Merlin, OBI, and on the other hand by what is happening in the residential construction market, which last year achieved the best results for a decade. A very important factor is also the renovations, not only carried out in houses or flats by hand or with the help of rented specialists, but also on the non-residential market. More and more often, employees pay attention to the standard in which they work, and the best employers invest a lot to make offices business cards and another factor conducive to employment in a market with such a low unemployment rate.

All these factors cause that both the DIY market, where the final customer is an individual and the one where it is a company or institution, record very high growth dynamics. On the other hand, the record-breaking results in the last two years, 2016 and 2017, will make it difficult for the market to grow so strongly, which is due to the high base effect and fewer positive factors influencing the market, such as growing requirements for borrowers, less support for government programmes or even the introduction of a trade ban on Sundays. The latter factor will temporarily have a negative impact on the market, as Saturday and Sunday were the days when sales of non-food products recorded the best results. In addition, food trade giants such as Biedronka and Lidl also started to fight for customers on Saturdays, introducing new promotional campaigns, which additionally affects the lower turnover of non-food chains, including the DIY product range.

It is worth mentioning the subsequent stages of consolidation of the Polish DIY market. The bankruptcy of the Praktiker shows that large cities are taken over by such chains as the aforementioned Castorama, Leroy Merlin or OBI, which in total account for 25% of the entire DIY market. On the other hand, smaller cities and towns are the domain of such players as Mrówka, Bricomarche, or the dynamically developing ABC Construction Majster network, including the newly established Pszczółka network. The area of the latter shops is often several times smaller than that of large players, but thanks to greater flexibility and partnership or franchise cooperation they are doing well on local markets, where the fight for customers has not yet reached the same level as in the largest agglomerations.

Leave a Comment

Your email address will not be published.

You may also like

COVID 19 Market

Coronavirus: HoReCa market hit hard

post-image

On 14 March 2020, an epidemic threat state was introduced in Poland and a number of restrictions were announced to stop the spread of coronavirus (SARS-CoV2, Covid-19) in the country. Overnight, the HoReCa industry found itself in a completely different reality – the activity of restaurants was limited only to providing delivery and take-away services. On 24 March the restrictions were extended to 11 April 2020.

 

Restaurants closed to guests

On 14 March 2020, an epidemic threat state was introduced in Poland and a number of restrictions were announced, including the reintroduction of border controls, a ban on foreigners’ entry into Poland (with exceptions), and the suspension of international flights and railway connections.

The activity of restaurants, pubs, bars and other catering establishments was limited only to the possibility of delivering food and take-away services.

Future of HoReCa depends on how long restrictions last

Before the coronavirus epidemic reached Poland, PMR predicted a 5%…

Read More
COVID 19 News

Coronavirus increases online shopping comfort

post-image

After the decision to close non-food stores in shopping malls from 14 March, clothing, footwear and home furnishing chains were forced to move virtually all their activities to the Internet. Thus, retailers introduces further facilities to encourage customers to shop more often.

Free deliveries, longer return periods

A number of e-shops have introduced free deliveries – H&M for loyalty card holders without price restrictions, Zara plans the same. E-shops also extend the return time – H&M to 100 days, KappAhl to 90 days and the Inditex Group’s chain to 30 days from reopening stationary stores. The landline stores thus adapt to the competition of pure online players – for example, Zalando has always offered free delivery and a 100-day return period.

Allegro Smart for everyone

However, companies specializing in Internet sales do not remain indebted – Allegro has introduced free Allegro Smart deliveries for all users. They can be activated until 18 April…

Read More
COVID 19 News Trends

Coronavirus: latest information from the retail market

post-image

The situation related to the impact of the COVID-19 epidemic is developing hour by hour. At the moment (as of 19 March 2020), 325 people are infected in Poland, five people have died. The epidemic and measures to counteract it also hit the retail market – below key information from recent days.

Aid package for entrepreneurs

The Polish government has announced a PLN 212 billion aid programme for the economy and entrepreneurs affected by the current crisis related to the COVID-19 epidemic. Although, contrary to what has been announced, it is not part of the programme to lift the trade ban on Sunday, the good news for retail chains is the postponement of the entry into force of the retail tax at least until January 2021.

Non-food suffers the most

The vast majority of industrial goods stores must remain closed during an epidemic. Retailers try to increase online sales , by offering free…

Read More
COVID 19 Market News Trends

Who will benefit and who will lose from coronavirus? Epidemic’s impact on grocery retail channels

post-image

For two weeks now we have been bombarded with a steady stream of news about how the coronavirus outbreak is affecting grocery retail. Large-format stores are grappling with increased traffic and stockpiling, and deliveries from e-stores are taking much longer due to higher demand. On the other hand, borders have been closed and domestic flights suspended, minimising travel and movement, and all shops in malls except grocery stores have been told to shut down to keep traffic as low as possible. Amid all this, PMR has attempted to estimate the likely impact of the epidemic on the grocery retail market and its individual distribution channels.

E-commerce will gain. Will anyone else?

In a new report, “The impact of the coronavirus epidemic on the grocery market in Poland. Alternative scenarios and development forecasts for 2020,” we present forecasts of how the grocery market and its channels will fare in 2020, under three…

Read More
COVID 19 News Trends

Poland to receive 450,000 fewer tourists in 2020?

post-image

HoReCa is among the sectors most vulnerable to the effects of epidemics. Regardless of how bad the coronavirus outbreak gets in Poland, the panic and fear that it causes among the public could make people avoid restaurants and travel.

In our increasingly globalised and interdependent world, the risk of epidemic spread of infections has grown significantly. By 10 March, the novel coronavirus that emerged in China in late December had spread to as many as 115 countries. At the time of writing, Italy is the European country worst hit by the coronavirus. As of 10 March, the Italian government imposed nationwide measures to contain its spread, including a total ban on public gatherings and mass events and closure of cinemas and theatres, as well as schools and universities. And bars and restaurants have to close at 6.00 PM at the latest.

Poland announced its first confirmed case of covid-19 on 4…

Read More
Trends

Zabka introduces non-meat hot dogs

post-image

At the beginning of March 2020, the Zabka convenience store chain informed about novelties in the offer of its stores. In response to the changing trends, Zabka introduced non-meat hot dogs.

 

Non-meat hot dogs at Zabka stores

Zabka informed that a non-meat version of hot dogs is now available. Hot dogs are based on, among others, pea protein, potato protein and rapeseed oil. In addition, Zabka Cafe offers sauces without animal ingredients. As Zabka emphasized in the announcement, the process of preparing meatless hot dogs ensures that sausages are separated from those without meat and also that they are served with other pliers.

Zabka chain of shops has over 6,000 outlets. According to Zabka, hot dogs are sold in its stores every 2 seconds on average.

Growing popularity of meatless diet

According to PMR surveys, the popularity of a meatless diet is growing. This trend has an impact not only on the HoReCa market,…

Read More