According to an analysis of over 2 million promotions, their total number increased by nearly 13% last year compared to 2023. The highest growth was recorded in convenience store chains, which saw a rise of almost 27% year-over-year. This allowed them to surpass discount stores, which increased their promotions by over 23% year-over-year. Other retail formats showed weaker growth: supermarkets increased promotions by nearly 14%, hypermarkets by 8%, consumer electronics stores by over 5%, and cash & carry chains by just over 1%. On the other hand, DIY stores saw a decline in promotions by almost 13%, as did drugstores and pharmacies, which reduced their promotional efforts by more than 4%. Experts believe that discount stores, seeing these results, may surpass convenience store chains in the coming year. Some argue that, from a branding perspective, discount stores are already winning as the “cheapest stores” due to the effective promotional and advertising strategies of the two key competitors in the price war.
Analysts from UCE Research, Hiper-Com Poland, and the BLIX Group examined over 15,000 promotional catalogs published between 2023 and 2024. These catalogs contained a total of 2.2 million promotions, covering nearly 311,000 pages and more than 9.5 million cm² of advertising space. The analysis included eight major retail formats: discount stores, hypermarkets, supermarkets, convenience store chains, and cash & carry outlets. Additionally, it covered drugstores, pharmacies, DIY chains, and consumer electronics stores. The study found that in 2024, retail chains ran precisely 12.5% more promotions than in 2023.
“This increase is due to several factors, including the rise in Poland’s minimum wage, which was adjusted twice in 2024, lower inflation compared to 2023, and the ongoing price war among retailers, particularly discount chains. Retailers launched more promotions to encourage Polish consumers to spend more, especially as their willingness to rebuild savings lost in previous years increased. Meanwhile, inflation growth in the second half of last year intensified price competition among retailers,” says Dr. Urszula Kłosiewicz-Górecka from the Economic Foresight Team at the Polish Economic Institute (PIE).
According to Marcin Lenkiewicz from the BLIX Group, inflation has led consumers to seek discounts more frequently for their daily shopping. “This prompted retailers to increase their promotional activities to meet consumer expectations and enhance competitiveness. Leading grocery retailers expanded the range of discounted products and increased the frequency of promotional catalog releases to gain an advantage over their rivals,” he adds.
The vast majority of retail formats saw year-over-year growth. “Maintaining sales when consumers become more mindful of their spending is crucial in large-scale business. The price war among discount stores has forced almost all market players to engage in competition, knowing that the discount format is the most effective in leveraging promotional tools and mass sales of private-label products,” notes Dr. Maria Andrzej Faliński, former general director of POHID.
The analysis also shows that convenience store chains increased their promotional efforts the most, with a year-over-year rise of 26.8%. “This is due to the dynamic adaptation of this format to changing consumer needs. The convenience channel is becoming increasingly competitive by offering accessibility and ease of shopping. At the same time, it intensifies promotions to attract customers looking for quick shopping solutions at attractive prices. The price rivalry between discount stores and convenience store chains has clearly influenced the strategies of both formats, though the latter have been quicker to respond to local consumer needs,” explains Marcin Lenkiewicz.
By comparison, discount stores increased their number of promotions by 23.2% year-over-year. “Although they ranked second in the analysis, they still benefited the most by driving more customers into the ‘cheapest’ stores or successfully positioning themselves as such through promotional and advertising communication. This is clearly reflected in rising sales figures despite higher prices. It is the result of a masterfully executed campaign by the two key rivals in the price war,” comments Dr. Maria Andrzej Faliński.
Dr. Urszula Kłosiewicz-Górecka suggests that competition from convenience store chains may push discount retailers to launch even more promotions. “This will depend on companies’ financial capabilities and households’ sensitivity to price reductions, as consumers are increasingly focused on achieving a good price-to-quality ratio when shopping,” she notes.
Further down the rankings, supermarkets saw a year-over-year increase of 13.7%, hypermarkets 8%, consumer electronics stores 5.1%, and cash & carry chains 1.2%. According to Julita Pryzmont from Hiper-Com Poland, these formats experienced moderate growth. “However, the cash & carry channel, due to its specific business model, focuses more on B2B clients, which limits its promotional dynamics,” she highlights.
In contrast, DIY stores recorded a 12.8% decline in promotions year-over-year, while drugstores and pharmacies saw a 4.2% drop. “Due to inflation, consumers have started reducing spending on renovation and construction products. DIY chains have responded by scaling back their promotional activities to avoid further margin reductions during a challenging period. Meanwhile, the decline in promotions in drugstores and pharmacies can be attributed to lower promotional pressure. Health and beauty products often have high consumer loyalty, meaning customers are willing to pay more for trusted brands even in difficult times. As a result, drugstores and pharmacies may have scaled back promotions to protect their margins, especially given rising operational costs,” concludes Julita Pryzmont.
Source: CEO.com.pl
