Poland’s retail market sees highest developer activity in a decade

The Polish retail market reached a historic level of activity in 2024, marking its strongest performance since 2015, according to the latest report At a Glance: The Modern Retail Market in Poland by BNP Paribas Real Estate Poland. Key drivers of this growth include the expansion of retail parks, the rise of the luxury goods market, and technological advancements such as AI in retail.

A Record Year for Retail Development

In 2024, developers delivered approximately 545,000 square meters of modern retail space across Poland, the highest volume since 2015, when 620,000 square meters were completed. The fourth quarter alone saw the addition of 200,000 square meters, bringing Poland’s total modern retail stock to 16.5 million square meters.

At the end of 2024, around 330,000 square meters of modern retail space was still under construction, including redevelopments and changes in retail formats. Retail parks accounted for 74% of this pipeline, further underscoring their growing dominance in the sector, while traditional shopping centers represented just 10% of ongoing development. This trend reflects consumer preferences for convenience-focused retail formats, which have become increasingly popular in response to evolving shopping habits since the pandemic.

Retail Parks Undergo Transformation

The retail park sector in Poland is undergoing a major transformation. Before 2010, Polish retail parks spanned up to 100,000 square meters and offered a limited selection of retail categories. Today, these developments are smaller in scale, averaging less than 10,000 square meters, and are located in smaller cities, including those with populations below 50,000 residents.

Fabrice Paumelle, Director of the Retail Department at BNP Paribas Real Estate Poland, noted the shift in tenant composition, stating that discount chains such as Pepco, Action, TEDI, and Dealz now occupy around one-third of rental space in retail parks, while food discounters make up another 15%. In major urban areas, retail parks are increasingly incorporating restaurants, entertainment zones, and DIY stores, as well as showrooms and pickup points for e-commerce, reinforcing their role in omnichannel retail strategies.

Among the major openings in Q4 2024 was Vendo Park Szczecin, developed by Trei Real Estate, adding 22,000 square meters to the market. Another significant project was the redevelopment of the former Sukcesja shopping center in Łódź, now rebranded as Nowa Sukcesja, which features one of Europe’s largest entertainment zones, covering over 46,000 square meters.

Luxury Goods Market Strengthens Amid Economic Growth

Another emerging trend in Poland’s retail sector is the rapid growth of the luxury goods market, fueled by rising consumer purchasing power and increasing demand for high-end products and services.

According to KPMG, the Polish luxury market reached PLN 55.6 billion at the end of 2024, representing a 24.6% increase compared to 2023. The largest segment was premium and luxury cars, accounting for 65% of the market, with an estimated value of PLN 36 billion. The luxury hotel and spa industry followed, valued at PLN 7.8 billion, making up 14% of the segment.

Klaudia Okoń, Senior Consultant at BNP Paribas Real Estate Poland, highlighted that while Poland’s luxury market is still in its early development phase, the growing awareness and purchasing power of Polish consumers are driving significant expansion. This trend mirrors broader economic and social shifts, with affluent shoppers increasingly seeking exclusive products and experiences.

Artificial Intelligence and the Future of Retail

The retail sector is also seeing a technological revolution, with AI-driven solutions reshaping the shopping experience. Consumers increasingly expect seamless online shopping, with complicated payment processes often cited as a reason for abandoning purchases. In response, retailers are implementing one-click payment systems like Apple Pay to enhance checkout efficiency and security.

Additionally, cross-border e-commerce sales are expected to grow at twice the rate of domestic transactions, as Polish consumers become more comfortable ordering goods from international retailers.

Looking ahead to 2025, retailers are set to expand AI-powered shopping tools, including virtual fitting rooms, interactive furniture visualizations, digital showrooms, and AI shopping assistants. These innovations aim to create more engaging and personalized shopping experiences, further blurring the lines between online and offline retail.

A Retail Market in Transformation

Poland’s retail sector is experiencing its most dynamic growth in a decade, driven by the rise of retail parks, luxury goods, and AI integration. As developers continue to focus on convenience-driven retail formats, and consumers embrace digital shopping advancements, the market is poised for further transformation in 2025 and beyond.

Source: BNP Paribas Real Estate Poland