Biedronka plans to increase network by 130-150 net shops in 2024

Biedronka, Poland’s leading grocery chain, has announced ambitious plans to expand its sales network by 130-150 net outlets this year and remodel approximately 275 existing stores, according to its owner, Jeronimo Martins.

“Our main brand will continue to strengthen its market position, leveraging significant flexibility to adapt its format to market opportunities. We plan to add between 130 and 150 net new locations to our network. The refurbishment program will cover approximately 275 stores,” the company announced.

Despite a significant increase in Poland’s minimum wage, the grocery retail sector has been experiencing a decline in volumes, contributing to heightened competition in the market.

“If consumer demand improves before the end of the year, it will positively impact market evolution and our results. In an increasingly competitive environment where price is a decisive purchasing factor, Biedronka will maintain its position as a price leader and prioritize volume sales growth,” the company added.

As Biedronka enters the second half of the year, which is expected to be more challenging in terms of volumes, the chain will increase its investment in pricing, aiming to strengthen its competitive position and offer more savings and value to Polish consumers.

“During a period where our core brand anticipates continued basket deflation, implementing this strategy will continue to pressure our EBITDA margin, potentially more so in the second half of the year compared to the first,” the statement noted.

In the first half of this year, Biedronka opened 60 stores (51 net) and carried out 104 refurbishments, bringing the total number of outlets to 3,620 by the end of June. The total shop area increased to 2.58 million sqm from 2.42 million sqm a year earlier.

Source: Biedronka and ISBnews