German discount retail giant Woolworth is entering the Polish market, with the aim of having up to 25 stores there by 2024 followed by dozens more as part of an international expansion.
The chain – which was originally a subsidiary of the American Woolworth Company but has been a separate entity since 1988 – intends to open its first outlet, with over 1,000 square metres of retail space, in an Atut retail park in Kraków next May.
“We see the potential for long-term development of our network in Poland,” Maciej Ćwikła, CEO of Woolworth Polska, told industry news service Retailnet.pl. “In the first year of operation…we want to open from 15 to 25 stores.”
He added that the company planned to open another 30 locations in its second year in Poland before “picking up the pace” with 50 new stores a year subsequently. The firm currently has over 500 branches in Germany.
“We see a similarly large potential in Poland,” Ćwikła said. “Our analysis shows that the retail trade in Poland has enormous potential. We are sure that the Woolworth brand will have a similar level of success in Poland as we have achieved in Germany.”
Figures from NielsenIQ, a market data agency, last year showed that discount stores were booming in Poland, with 134 opening over the previous 12 months. In the same period, 1,600 small shops had closed while 13 megastores also shut.
This year, Poles’ wallets have been squeezed even further as inflation has risen to the highest level in 25 years, and among the highest in Europe. Ćwikła said that Woolworth aimed to keep its prices “at almost the same level, even in times of global price increases”.
While discounters – including German supermarket chains Lidl – have thrived in Poland, some other large international retailers have struggled. In 2020, Tesco announced that it was withdrawing from the country completely while Carrefour last year reportedly began looking to sell its Polish operations
The first “social shop” in Kraków has opened, providing free groceries to people struggling with the cost of living as well as offering advice on healthy eating.
Inflation in Poland last month rose to a 25-year high of 17.2% https://t.co/7sR6M61Jdu
— Notes from Poland 🇵🇱 (@notesfrompoland) October 7, 2022
Main image credit: Woolworth.pl (press materials)
Peter Kononczuk is senior editor at Notes from Poland. He was previously a journalist for Agence France-Presse (AFP) in London and Warsaw.
