Between the pandemic, the war, rising prices and increasingly frequent warnings of recession — these are the conditions in which the retail sector operated in the first quarter of 2022. The authors of the cyclical report from BNP Paribas Real Estate Poland point out, among others: continued strengthening of the position of discount store chains and growing interest in facilities with a high potential for modernization, expansion and repositioning.
What kind of retail? It depends...
The definition of retail entails a high degree of flexibility and adaptability to the environment. Recent months have served as an additional test in forecasting trends, expectations and consumer behaviours, as well as in implementing bold changes. The experience of the last two or three years allows us to have an optimistic outlook on the future of retail, which — after all — is extremely open to innovative concepts and new formats.
emphasises Fabrice Paumelle, the Director of the Retail Department at BNP Paribas Real Estate.
Retail parks dominate construction sites
Due to the soaring prices of construction materials and operating costs, accompanied by the outflow of workers from the construction sector, projects based on expansion, reconstruction and various types of modernisation are making a strong entrance. The facilities with the greatest potential will be the first ones to gain a new life. For example, those which until recently were occupied by the Tesco chain.
says Małgorzata Fibakiewicz, Head of Business and Consultancy Department at BNP Paribas Real Estate Poland.
Discount stores still on the rise
Market take-over by discount store chains can easily be called a strong trend. Moreover, there is nothing to indicate that it will change in the coming quarters. The success of discount stores is not only based on the customers looking for lower prices, but also on the willingness to make comfortable purchases in one place, preferably somewhere with a parking lot. Shopping centres are more and more frequently opening their doors to such stores in hopes of attracting a larger number of customers. In addition, the current arbitration on available spending power of Polish consumers will lead an increasing number of customers to seek out discount stores.
emphasises Fabrice Paumelle, Director of the Retail Department at BNP Paribas Real Estate Poland.