Country Spotlight: Poland

Poland has appeared prominent across numerous publications of late, especially following the ICSC’s recent European Conference in Warsaw. I thought I would shine a light on some of the current developments occurring across the country, and what the future retail market is looking like.

Last September, Poland introduced a new tax on retail sales. Tax Partner at RSM Poland, Piotr Liss said ‘This will not decrease the number of shopping centres in Poland. The tax will increase the competitiveness of small and medium-sized businesses.’ The article goes on to unfold each family is to receive a monthly benefit of PLN 500 for the second and each consecutive child, this is expected to be injected into the market, allowing retailers to increase their sales.

Echo Polska Properties reported the purchasing power of Warsaw is exceeding the national average of €6,437 by 68%, reaching €10,804 per person/year. This is demonstrating a strong consumer profile for the Polish retail market, giving confidence to future developments.

Cushman & Wakefield’s research reveals extensions to existing centres across Europe will be driving development in 2017-18. Poland is expected to add 546,000 sqm of new shopping centre space in 2017-18, which will be the third largest development pipeline in CEE. Here are some of the developments currently under construction –

• In Warsaw, there is a new development underway set to be completed in 2017- ETHOS retail scheme. This centre will be situated in the heart of a prominent business location and is already expected to receive a high footfall.
• Also in Warsaw, there is the 64,000 sqm Galeria Połnocna under construction, due to be completed by Q2 2017.
• Another large development is the Galeria Młociny due to be completed in 2018. This centre is situated in a prime location with excellent transport links in Warsaw’s Bielany district. The development will boast a massive 220,000 sqm and reported in March that it was already 60% leased – demonstrating the centres future strength.
• Serenada will be a 42,000 sqm shopping and entertainment centre in Olsza zone, Krakow. This will be the largest retail and entertainment destination in Krakow, and on their website, it states the scheme has a proven footfall of 8million visitors a year!

As well as new developments, there are consistently new, innovative initiatives being implemented in existing schemes. Magnolia Park has been awarded Poland’s best shopping centre at the recent PRCH Retail Awards.  The scheme was built in 2007 and received this award due to their constant evolvement and development of the centre.

Despite the new tax in place, it hasn’t slowed down the development of the commercial property sector as you can see from the list above. With spending power strong, and the volume of developments set to complete over coming months; the Polish retail market is looking towards a very buoyant future!

Kat Whitehead, Senior Marketing Executive, Foundation Recruitment