Colliers International sums up the first half of the year on the Polish retail market
Warsaw, July 23, 2020 – According to Colliers International's research, in H1 2020 approximately 135,000 sq m of modern shopping centres were delivered to the market, which has resulted in an increase in the total stock of this space in Poland to
12.2 million sq m.
At the end of Q2 2020, over 350,000 sq m of modern retail space was under construction, of which approx. 60% will be delivered in Q3-Q4 2020. Taking into account the completed and under construction projects, the annual supply of modern retail space should amount to 300-350,000 sq m, slightly higher than in 2019.
Wrocław and Rzeszów most saturated
New retail properties are being built mainly in cities with less than 100,000 inhabitants (over 60% of the area) and are small properties (5-10,000 sq m) with a "daily shopping" profile. 22% of new space is being constructed in the largest agglomerations.
The largest projects completed are Park Kujawia in Włocławek (23,700 sq m). Constantly the largest markets, both in terms of the number of facilities and their area, remain the markets of Warsaw agglomeration and Katowice conurbation. At the end of June, the density of shopping centres in Poland increased to 319 sq m/1,000 inhabitants. In the group of the largest agglomerations, the highest saturation was recorded in Wrocław (888 sq m/1000 inhabitants), and among medium-sized towns in Rzeszów (1173 sq m/1000 inhabitants).
Time of dynamic change
In Q2 2020, we observed numerous renegotiations between tenants and owners of shopping centres. Regulations restricting retail activity due to the COVID-19 pandemic forced retail chains to focus on making quick decisions in areas related to maintaining sales continuity and minimizing costs.
“The period of the pandemic significantly accelerated the dynamics of trade changes, which are moving towards multi-channel sales. The temporary closure of shopping centres has resulted in many chains deciding to launch additional sales and distribution channels, either on marketplace platforms or by expanding the scope and forms of electronic order and delivery. Definitely the strategy of digitization of companies has become fundamental for the development and maintenance of business stability, and this trend will be more and more visible”, said Dominika Jędrak, director of Research and Consultancy Services at Colliers International.
Activity in the e-commerce sector is growing significantly. For many companies, online business will reach the level of about 20-25% of total sales within a few years. During the COVID-19 pandemic, retail chains are testing new solutions. For example, mobile pick-up points are introduced, Internet sales and cooperation with TAXI operators are launched, Click&Collect services are developed or the "traffic meter" system forecasting current traffic in a selected shop.
“Opinions about the end of trade in the traditional formula are greatly exaggerated. Stationary stores will continue to play a large role in building sales and development of retail companies. However, the strategy regarding the number, type of location or format will clearly be modified”, sums up Katarzyna Michnikowska, associate director in Research and Consultancy Services at Colliers International.