The total area of modern commercial properties launched for use in the first half of 2024 in Poland reached 175,000 sq m, according to data from Colliers. As a result, the total resources in the country exceeded 13 million sq m. A significant majority of the new supply, over 90%, was realized in the form of shopping parks. Currently, there are 380,000 sq m under construction, of which as much as 78% is planned to be completed this year.
Retail Parks Dominated the Supply
In the first half of 2024, 175,000 sq m of modern retail space was launched, an increase of nearly 30,000 sq m compared to the same period in the previous year. The new supply was dominated by retail parks – 13 new projects accounted for 160,000 sq m of new space.
The largest facility opened to the public in March 2024 was the OTO Park Koszalin, offering 38,000 sq m. The only traditional shopping centre opened during this period was the Galeria Starówka in Leszno (15.2 thousand sq m).
Significant impact on the new supply also came from the reconstruction of already existing objects. In the first half of the year, the S1 Bytom retail park, built on the site of the former Tesco, was launched. Its area after rebuilding is 14 thousand sq m. There were also extensions made to the Grójecka Dekada, Sochaczewski Multishop, and the Karuzela shopping park located in Biała Podlaska.
“The dynamic development of retail parks, new outlet centres, and the growing importance of food hall concepts confirm that the retail property market in Poland is in a phase of intensive transformation, adapting to the changing needs of consumers,” says Wojciech Wojtowicz, Senior Analyst in the Advisory and Market Research Department at Colliers. “In terms of location, developers are interested in smaller centres and suburbs of the largest agglomerations,” adds Wojciech Wojtowicz.
The saturation of shopping centre space in Poland at the end of the first half of 2024 was 343 sq m per 1,000 inhabitants. For comparison, in the same period last year, this coefficient was 13 sq m lower.
New Facilities and Optimisation of Space
In the first half of 2024, the demand for retail space in Poland was invariably dominated by retail chains from the economic sector, discount stores, and off-price stores. Particular activity was also demonstrated by electronics stores, which not only opened new outlets but also optimized the space of those already existing. A significant movement in the electronics sector was associated with the restructure of the NEONET network, which resigned from chosen locations. As a result, competitive brands decided to take over some of the existing facilities, for example, in Milanówek and Suwałki.
DIY networks also pursued an ambitious development strategy. As part of the shopping complex on Wojska Polskiego Street in Piła, a new Castorama hall was opened, and a new stand-alone facility of this network was created in Biała Podlaska. In Grójec, in the Dekada project, a Castorama was opened in the Smart concept. Leroy Merlin, in the place of the former Tesco hypermarket, opened a new store in Poznań, and a new facility of this network joined the Karuzela shopping park in Biała Podlaska. The dynamic development was continued by food networks, especially discount ones.
The gastronomy sector also showed increased activity. In May in the Krakow project Atut Ruczaj, the Hala Maki concept opened with six gastronomic outlets. After several months off, a food hall in the historic market hall in Bydgoszcz was reopened, which now operates under the name Gwar. In Warsaw, Hala Gwardii changed hands to CBR Events management and is currently undergoing renovation. In Gdańsk, the Apsys company plans to rebuild the Market Hall into a food hall, and similar projects have been announced in Sopot, Toruń, and Poznań.
“We currently observe a return of gastronomic tenants to pre-pandemic levels. This is particularly visible in the case of fast food chains and ‘large’ restaurateurs who have capital and an appetite for development,” explains Paweł Paciorek, Senior Associate, Retail Space Department, Colliers. “Foreign entities also recognize the potential of the Polish market, a confirmation of which is the interest in our country from brands such as Popeyes or Wendy’s. Places of interest for gastronomic tenants invariably remain premises on shopping streets in the centres of large cities, but their place is increasingly being taken by spaces in multi-purpose projects and food halls, as well as locations in modern residential buildings,” adds Paweł Paciorek.
Despite intensive development, significant closures were also noted on the Polish retail space market. In the first half of 2024, the last Alma delicatessen shop and Hunkemoller brand shops ceased operations. The Kontigo drugstore chain announced a plan to liquidate all stationary establishments in Poland in favor of developing an online sales channel.
The average vacancy rate for shopping centres in the first half of 2024 was 3.6%.
E-commerce Market Trends
In the first half of 2024, the share of e-commerce in retail sales, according to GUS data, ranged from 8% in March to 8.8% in January and April. Although these results do not differ compared to the same period last year, during these few months, the e-commerce market experienced many significant events and changes that significantly influenced its dynamics.
The leader of the Polish convenience store market, Żabka Group, decided to combine Delio and Jush services into one application (Żabka Jush), and the courier service provider Wolt expanded its activity to other cities, such as Toruń, Olsztyn, Częstochowa, Chorzów, Sosnowiec, and Piaseczno.
The Hesburger brand debuted on the Bolt Food platform, starting its activity in Poland from sales with delivery. The largest food retailer in Poland, Biedronka, launched an online store, but at the moment it only serves selected parts of Warsaw. Kaufland also presented plans to expand e-commerce activities, intending to launch a platform for ordering products with delivery under the name Kaufland Marketplace later this year.
Meanwhile, the HalfPrice network decided on a reverse move, closing its online store at the end of the first quarter of 2024.
New Investments and Development Prospects
At the end of June 2024, approximately 380,000 sq m of retail space was under construction, with almost 300,000 sq m planned for completion this year. The dominant format remains retail parks – they account for about 290,000 sq m, which is 75% of the constructed area.
The largest commercial construction in progress is the shopping and entertainment centre Nowa Sukcesja in Łódź with an area of 35,000 sq m. Among the largest retail parks under construction are BIG Ostróda (27,000 sq m), Silwana in Gorzów Wielkopolski (25,000 sq m), Vendo Park Szczecin (over 20,000 sq m), and San Park Mysiadło (18.5 thousand sq m) in the Warsaw agglomeration.
In the central point of Warsaw, at Rondo Dmowskiego, the flagship Empik showroom with an area of 1,300 sq m is being built, which is to restore the historical appearance of the Cepelia pavilion. Warsaw is increasingly attractive for luxury brands. On Plac Trzech Krzyży, a Bulgari salon will be opened, and a Dior boutique will appear in the Vitkac project.
There is also expected to be a lot of investor and tenant activity related to food hall concepts. Announcements of the implementation of such projects concern, among others, the historic market hall in Gdańsk, Hala Gwardii in Warsaw, the Crooked House in Sopot, and investments in Poznań and Toruń.
Ecological Requirements
By the end of the year, the food industry will also have to adapt to new requirements related to the introduction of a deposit system. At the same time, the number of entities obliged to report under ESG will increase. In response to these challenges, shopping centres and shops will invest in solutions aimed at reducing energy consumption.
Source: https://ceo.com.pl/podsumowanie-i-polowy-2024-r-na-rynku-powierzchni-handlowych-w-polsce-45069
