The number of new brand debuts is narrow and some retail chains have disappeared from the Polish market, including the Tallinder fashion brand from Polish LPP Group and the American gastronomy operator Dairy Queen. Polish delicatessen chain Alma is closing its supermarkets.

Supply

New retail schemes with more than 5,000 sqm GLA were completed during Q3 2016. However, in Galeria Radomsko, the second stage of the project was opened and features stores from LPP Group, Neonet and CCC.

Other Polish retail schemes are currently being modernized and refurbished, including Port Łódz, Galeria Krakowska and Poznan City Center. The re-modeling of further sites has also been announced by Carrefour (for example Zielone Wzgórza in Białystok and Galeria Gryf in Szczecin).

Demand

In Q3 2016, several new retail chains debuted, but new brands will appear in the market on a wider scale with the opening of the Posnania shopping center (Q4). In Plac Unii in Warsaw, the men‘s fashion brand Navigare opened its first store and in Galeria Mokotów Lego Store and Le Creuset (kitchen accessories) opened stores. Fashion chain Forever 21 accelerated its debut on the Polish market opening its first store in Manufaktura in Łódz. The Amercian shoe brand Steve Madden also opened its first store.

Among lease transactions announced in Q3 2016 in planned projects, worth mentioning are C&A, GO Sport and Smyk in Galeria Młociny and Martes Sport, Smyk and the medical center GynCentrum in Galeria Libero in Katowice.

Several lease transactions were signed in already existing shopping centers, including TK Maxx in Galeria Victoria in Wałbrzych, Gate in Futura Park in Kraków, fitness Fabryka Formy in Zielone Wzgórza in Białystok, Smyk in Tarnovia shopping center, H&M in Galeria Askana in Gorzów Wielkopolski as well as the LPP Group in ETC Swarzedz.

Vacancy

The average vacancy rate in the eight largest Polish agglomerations stood at 3% at the end of June 2016; however, the rate in large cities (200-400,000 inhabitants) is 4.6%.

Among main retail markets, the lowest vacancy rate is in the Warsaw market (1.6%). The highest proportion of available retail space is in Poznan (5.2%).

Among large cities (150-400,000 inhabitants) the highest proportion of available retail space is in Radom (9.3%), while the lowest vacancy rate is noted in Olsztyn (1.5%).

Prognosis

The largest retail scheme currently under construction is Posnania (approximately 100,000 sqm GLA), which represents more than a quarter of the total 2016 supply. Other significant shopping centres under construction are Wroclavia (64,000 sqm), Galeria Północna in Warsaw (64,000 sqm) and Forum Gdansk (62,000 sqm).

“Recently, we have observed an intensive development of chains of sport sector including stores offering sports goods and clothes and fitness clubs. Among the biggest lease transactions announced in Q3 2016 Decathlon in Plaza Rzeszów, StepOne Fitness in CH Focus in Bydgoszcz or Martes Sport in Libero in Katowice are worth noting” — said Dominika Jędrak, Director, Research and Consultancy Services, Colliers International. 

In Q3 2016, no new large-scale construction started. However, extension work began on Auchan Hetamnska in Białystok, where H&M, Toys’R’Us and Martes Sport stores will be located. Construction is also taking place on Galeria Łysica in Ostrowiec Swietokrzyski (12,000 m2 GLA).