At least 26 Polish brands have decided to expand in the Central and Eastern Europe region, as well as in Baltic countries, opening approximately 2,900 stores. This is according to a report by Colliers, “ExCEEding Borders”, which ranks them third in terms of activity in this area. The first position is held by Czech networks, while the second spot is taken by Lithuanian ones.
Key Expansion Sectors
Among Polish brands expanding abroad, discount, clothing and footwear segments stand out. The strong position of Polish fashion in the region is primarily due to the expansion of brands from the LPP Group, which includes Reserved, Sinsay, Mohito, House and Cropp. Already belonging to a group of key players in the European fashion industry, LPP is building a solid presence in the region. Noteworthy developments have also been seen with brands such as HalfPrice and 4F, who now have several dozen stores outside Poland.
The strong position of the footwear and leather goods sector also deserves attention, primarily due to the activities of brands like CCC and e-obuwie, both part of the same group. In the region, the products of brands such as Wittchen and Wojas are also popular. Recently, the Polish brand Ochnik opened its first store in Slovakia.
Polish brands continue to work to increase their availability in the analyzed countries. Brands in the food industry, and those carrying items for children and mothers (Cocodrillo), as well as cosmetic brands like Inglot and Ziaja, are also pursuing expansion.
“While earlier expansion in the food sector in the region was primarily driven by Western European brands, Polish networks are now starting to follow the same path. Biedronka recently made its debut on the Slovak market, and Żabka, a popular convenience store network, started its operations in Romania under the name Froo. For Biedronka, entering Slovakia means expanding its group of potential consumers by 2.12 million Slovak households”, explains Wojciech Wojtowicz, Senior Analyst in the Consultancy and Market Research Department at Colliers. “Owners of retail brands that have already established themselves in the Polish market are seeking opportunities to expand in foreign markets. The natural direction of expansion is the region of Central and Eastern Europe (CEE) and Baltic countries. Brands benefit from similar economic environments, cultural heritage, common consumer preferences, tastes, and fashion styles, and for selected countries: cases of linguistic similarities” – adds Wojciech Wojtowicz.
Promising Niches
Polish companies are increasingly entering European niche markets characterized by more long-term potential. Therefore, in addition to the retail sector, attention should also be paid to the international development of Polish brands in the fitness industry, driven both by consolidation and expansion. A case in point is the move made by Benefit Systems, the owner of the MultiSport program, which is dynamically developing its activities in the region, notably acquiring in Bulgaria fitness clubs operating under the “Flais” brand.
Czech Republic and Lithuania Outpace Poland
The expansion of local companies into neighboring markets is becoming increasingly common also among our neighbors. The Polish market currently hosts over 2,440 stores belonging to 22 brands originating from the CEE and Baltic countries.
“The expansion of foreign brands into Poland is particularly visible in the food sector as well as health and beauty – a whopping 75% of all brands from the region present on the Polish market represent one of these two categories”, explains Alicja Tucholska-Kuran, Senior Associate in the Retail Space Department at Colliers. “Poland, with a population of nearly 38 million people and a growing purchasing power currently at over 10,000 EUR per person per year, is a fairly attractive market for international companies that see increasing demand particularly for FMCG products”, adds Alicja Tucholska-Kuran.
In terms of expansion into Central and Eastern European countries, the Czech market stands out, with as many as 43 brands operating a total of 5,226 stores in the region.
Lithuania also demonstrates a wide range of export activities with 32 local brands operating in the CEE region and Baltic countries – mainly in Poland and Latvia. They represent a wide range of sectors – from fashion, through gastronomy, to DIY. However, the clear leader of the Lithuanian expansion is the food sector, led by Maxima Group, which operates nearly 1,000 “Stokrotka” stores in Poland.
Slovakia has the least active brands beyond its borders. So far, these companies have been relatively cautious in expanding their retail networks to international markets. Meanwhile, brands from other Central and Eastern European countries have made significant progress in the Slovak market. The Czechs, often treating Slovakia as the first stage of their international expansion, can boast more than 1,700 stores there, mainly in the health care and pharmaceutical sector. Just behind them are Polish brands, with over 350 stores in Slovakia, mainly in the fashion segment.
The authors of the report analyzed selected largest brands originating from the CEE-6 region and Baltic countries. These are brands that were established in one of these countries and began their expansion there. Only monobrand stores operating under a given brand were included in the Colliers research.
Source: https://ceo.com.pl/polskie-firmy-w-czolowce-ekspansji-handlowej-w-europie-srodkowo-wschodniej-35735
