Mixed-Use and Omnichannel are the Main Words in Poland
Recently, we have witnessed tremendous growth in retail facilities construction. However, it is expected to slow down. And thus, proprietors and tenants look for mixed-use and omnichannel retailing. Here is expert summary of the Polish retail market.
A slowdown in construction projects
By the end of 2018, 435.000 sqm of novel retail space appeared. Shopping centers took more than 265.000 sqm of that amount. The biggest projects were finished in Tri-City, Katowice, and Tychy.
According to the representative of expert Retail Agency, there is about 200.000 sqm available for lease in shopping centers under development. The facilities are expected to open in 2019. This is 40% less than the for the same period of 2018 which shows that the market of common formats becomes tight and Polish customers behave differently. Thus, developers and renters get involved in multiuse projects. Also, shopping malls pay more attention to the entertainment and food facilities.
Changes on the retail market
Last year retailers were expanding across Poland. 29 international brands entered the Polish market which means the country remains appealing for retailers.
According to expert company, omnichannel retailing was developing in 2018. New retail ideas appeared. Most of them suggested uniting distribution channels and high-tech digital solutions. Ikea store in Blue City shopping mall in the capital is a good example of that. Also, the market saw a few M&A transactions.
It is interesting to note that the rents in shopping malls remain the highest in Warsaw (up to €130 per sqm a month).
Financial analysts estimated that the sum of retail investment deals in the last quarter of 2018 was about €360 million. The total result for the year was around €2.5 billion and this is the highest number Polish retail market saw so far.
As representative said, 2018 was an interesting year for retail. Investors showed a huge interest in it. But they faced the biggest challenge after the Act on non-trading Sundays was accepted. However, the outcomes were better than expected and the turnover increased. 2019 is supposed to be not less interesting. The trade will be allowed on the last Sunday of every month only. But the market will see new formats and novel promotions.