Variety Stores in Poland

2020 IMPACT

Mandated lockdown restricted operations in 2020

As variety stores did not qualify as a retailer of essential products, these retailers were negatively affected during the initial lockdown. However, challenges persisted throughout the remainder of 2020 as well.

Network expansion and affordable products drive performance

Despite the lockdown, variety stores still enjoyed positive current retail value growth in 2020, although slower than what was seen in 2019. The good performance was largely related to the expansion of new networks in Poland, such as the Action, Dealz and Tedi brands.

Dynamic expansion secures Action Poland’s leadership position

The intensive expansion of Action’s chain allowed the player to secure a leadership position in just three years after entering Poland. New Action stores are opened mainly in retail parks, which also include other discount retailing stores.

RECOVERY AND OPPORTUNITIES

Positive outlook in the forecast period

The variety stores channel is set to enjoy strong double-digit current retail value growth in the beginning of the forecast period, before ever so slightly slowing. The growth will be attributed in part to the expectation of growing consumer demand for discount retail products as Polish consumers will remain in a period of economic uncertainty in the short-term at least.

Much room for development

There is still ample room for new variety stores in Poland, especially in smaller cities and towns. New chains debuted in Poland towards the end of the forecast period, such as German-based Tedi chain and Ximi Vogue, a Chinese brand offering products such as games, toys and decorations, as well as home interiors.

Major players will forge ahead with expansion plans

In the forecast period, leading operators will continue expanding the number of their outlets. The largest chains, Action, Dealz and Tedi, already announced further expansion plans pertaining to the number of outlets in Poland over the coming years.