Zabka and Carrefour to expand more in Poland

Date : 04 February 2015

Zabka and Carrefour will keep investing in the fast growing convenience channel in Poland.

Zabka with ambitious plans

Zabka has revealed ambitious plans to open 800 new stores in Poland in 2015. In total, Zabka’s owner investment fund Mid Europa plans to invest up to PLN2 bn (EUR488 m) in its expansion. The retailer is also in discussions to acquire six retail chains in the country. Zabka is also investing in service: it recently introduced contactless payment options and is also contemplating introducing click & collect corners to its stores. The retailer operated around 4,000 stores by the end of 2014.

Carrefour to expand convenience stores

Carrefour Poland plans to open 100 new convenience stores in 2015, maintaining the same expansion pace as last year. All new stores will be operated under franchise. Franchising is Carrefour’s expansion strategy not only in Poland, but across Central and Eastern Europe.

Our view

Zabka’s fast expansion plans could potentially be a risk for the retailer in the medium term. In a deflationary market, Zabka could find it difficult to generate positive like-for-like sales in the new stores. Other retailers, like Jerónimo Martins’s Biedronka have taken a more cautious approach, focusing on store efficiency. For more insight click here: Five trends to watch in Central & Eastern Europe in 2015

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Miloš Ryba is a Senior Retail Analyst International at IGD. Miloš has been analysing global retailers and emerging markets for more than a decade. His deep expertise lies in Central & Eastern Europe and Central Asia. Miloš regularly presents at leading conferences in Europe, Middle East and Asia and features in European and North American media.