About five years ago, Polish companies and brands, among them Sizeer, CCC, 4F and Sinsay, actively expanded their activities in the Baltic market. Now is the right time to take a response step – for Baltic brands to expand their activities in Poland.
This market is worth considering as a prospect for development for several reasons. Firstly, the population of this country is large and has a tendency to increase. Secondly, it is located close to the Baltic states, so it is relatively easy to manage a business. Thirdly, Poland has a wide and diverse selection of commercial facilities where business can be developed, and many projects are still in the planning and construction stages.
Also, the tax burden and total costs are not significantly higher compared to the Baltic states. Therefore, for the brands of the Baltic region, this is a direction that is worth considering for the expansion of their business and their chain.
The Polish market is waiting for niche players
It is not uncommon to hear that starting an operation in Poland is complicated, time-consuming, expensive, and requires additional human resources. However, in our opinion, this is not the case. And in the Baltic countries there are quite strong and ambitious brands, even small companies and family businesses, which are ready to take risks.
The Polish market could be promising for niche players, unique products and non-standard solutions. On the other hand, it would be more difficult to break into the traditional clothing and footwear segment.
Candy Pop, a candy store chain, is very close to opening stores in Poland. Small telecommunications and computer accessory dealers are also exploring opportunities in Poland, despite the fact that there are quite a few similar players there, but there is still room for new players. In our opinion, it would also be worth looking at this market for producers of a certain profile in the Baltic region.
The importance of location of Polish commercial objects
Just like anywhere else, the most important principle for a successful business in Poland is "location, location and again location". In any country, a negative business experience is often associated with the fact that the location and premises for a shop, cafe or service were chosen without understanding the market. That's why one of our first recommendations is to work hard on your potential location choice. It is important to identify who the customers are, understand who the target audience is, where it is and follow your customers.
The Polish market is very saturated in terms of commercial facilities. There are not only standard shopping centers, which are common here, but mixed-function facilities are rapidly developing, which include apartments, office spaces, and retail spaces. This is a new step in the development of this segment.
It is important to understand whether the specifics of the particular brand are more consistent with a "classic" shopping center or if it would fit more successfully in a mixed-use facility. Other times it is better to open a store on one of the streets or on the first floor of an office center. There are brands that are suitable for an "outlet" center or an amusement park.
Commercial areas in Poland and the Baltic region
Undeniably, the choice is difficult, because there are many more shopping facilities in Poland than in all the Baltic states combined. According to Colliers data, there are 146 objects with a total leasable area of 2.467 million square meters in the capitals of the three Baltic states, while in Poland there are 592 objects with a leasable area of 12.57 million square meters. In addition, in Poland, shopping centers are not only concentrated in Warsaw, there are several large cities that offer a wide variety of options.
Also, projects are currently being implemented in the Baltic region, in which the volume of leasable premises will be 70.3 thousand square meters, while in Poland, the volume of commercial space currently being developed reaches 328 thousand square meters.
At the same time, on the other hand, there are opportunities provided by the market – business prospects in this country are good. People's purchasing power is on average higher than in our region. The mentality, people's shopping habits and skills are very similar. Therefore, it could be a friendly, understandable environment for Baltic brands. Starting a business in this country will not be a completely new, unknown market opening. Merchants will soon find out exactly what their customers need.
