Agriculture ministry seeks purchase of Carrefour’s Polish assets to create state food retailer

Keep our news free from ads and paywalls by making a donation to support our work!

Notes from Poland is run by a small editorial team and is published by an independent, non-profit foundation that is funded through donations from our readers. We cannot do what we do without your support.

The agriculture ministry has recommended that the government seek to buy the Polish assets of French supermarket giant Carrefour, which is looking to exit Poland.

They could then be used to create a state-owned grocery retail network that would help challenge the “dominance of foreign discount chains” and support Polish farmers and other producers, says the ministry.

Carrefour began examining a sale of its Polish business earlier this year, drawing interest from major European competitors, including France’s Auchan, Germany’s Kaufland, Denmark’s Netto, Ukraine’s Silpo and Poland’s Żabka, according to media reports.

The agriculture ministry says that it wants the state-owned National Food Group (KGS) to join the bidding for Carrefour’s nearly 850 stores. The final decision on this matter will be made by the state assets ministry, which supervises KGS.

The agriculture ministry’s recommendation now marks the first formal move toward creating a domestic food retail chain backed by state capital. The idea was previously floated in 2020 by the former Law and Justice (PiS) government but never materialised.

According to the ministry, KGS could provide Polish food producers with a more secure market and help stabilise prices. The group, currently focused on procurement and processing, would gain a nationwide retail footprint.

“A key condition for the further development of Polish agriculture…is the creation of a national commercial market,” agriculture minister Stefan Krajewski wrote to state assets minister Wojciech Balczun

“This is particularly important in view of the dominance of foreign discount chains, which is leading to a monopoly, and the challenges arising from the current geopolitical situation,” he added.

Most of Poland’s largest supermarket chains are foreign owned, such as Biedronka (Portuguese), Lidl (German), Kaufland and Auchan.

Krajewski says that a Polish-owned, state-backed retailer would also help create a more effective distribution system for Polish farmers and other producers.

The ministry’s recommendation has been positively received by food industry groups and trade unions.

The Union of Meat Industry Producers and Employers (UPEMI) said the announcement “may be one of the most important events for the Polish agri-food industry this year” and expressed support for the idea, reports industry news service Wiadomości Handlowe.

Alfred Bujara, head of the national secretariat for banks, trade and insurance at Solidarity, Poland’s largest trade union, likewise told news service Portal Spożywczy that the proposal is “a very good idea”, which could help not only farmers but also small and medium-sized trade firms.

Carrefour operates one of Poland’s largest retail networks, with nearly 850 outlets in six formats.

According to the company’s website, its portfolio includes more than 90 hypermarkets and over 150 supermarkets, along with seven wholesale and discount stores. Most locations are smaller shops, with more than 530 convenience and specialist stores nationwide.

Carrefour also holds substantial assets beyond its stores. In Poland, it owns 45 shopping centres, nearly 40 petrol stations, and five central warehouses that support its logistics operations.

The chain is also considering selling its nearly 460 stores in Romania, and among the interested buyers is Poland’s largest convenience store chain, Żabka, which recently expanded into Romania.

Notes from Poland is run by a small editorial team and published by an independent, non-profit foundation that is funded through donations from our readers. We cannot do what we do without your support.

Main image credit: Carrefour Polska/Press materials

Alicja Ptak

Alicja Ptak is senior editor at Notes from Poland and a multimedia journalist. She previously worked for Reuters.