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Retail grows in small cities

Anna Oberc-Krzycka • 15/05/2019

Global real estate services firm Cushman & Wakefield has published a report “MARKETBEAT – Retail Market in Poland – Q1 2019”.

  • At the end of Q1 2019 Poland’s total retail stock amounted to 14.7 million sq m
  • More than 40,000 sq m completed across five new retail developments in the first quarter of the year
  • A 12% increase in online retail sales expected in Poland in 2019 compared to last year

The high level of retail space provision on Poland’s core regional markets is shifting both investor and developer interest towards smaller cities. According to data of global real estate services firm Cushman & Wakefield, almost 50% of this year’s retail supply will be delivered in cities below 400,000 inhabitants and 21% in towns with a population below 50,000.

As the retail market reaches maturity in Poland and competition increases, polarisation will widen. Underperforming retail schemes are therefore expected to be radically repurposed to incorporate office, residential or other functions.

With as many as 49% of Polish people doing online shopping and this year’s e-commerce sales expected to hit over PLN 55bn, both developers, property managers and brands will be driven to make further changes to the existing retail infrastructure and to adopt new technologies. Innovations that made their way to the market in Q1 2019 include the discounter Lidl’s mobile app and online store. The market evolution will benefit mostly customers who tend to prioritise customer experience over products,” said Małgorzata Dziubińska, Associate Director, Consulting and Research, Cushman & Wakefield.



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