Biedronka sales show modest growth amid competitive landscape

Biedronka, the popular Polish retail chain, reported a year-on-year sales increase of 2.6% in PLN for the third quarter of 2024, with total sales reaching €5.92 billion, reflecting a 7.8% rise in euros. However, comparable store sales (LFL) experienced a decline of 1.9% during this period.

In the first nine months of the year, total sales grew by 3.9% in PLN, while LFL sales fell by 0.7%. The report highlighted a trend of cart deflation following two years of rapid inflation, enabling Biedronka to enhance its market share despite tough year-on-year comparisons.

The chain emphasized that, despite a significant increase in the minimum wage in Poland, the retail food sector is experiencing challenges, leading to a decrease in overall sales volume. In this competitive environment, where pricing has become a crucial factor for consumers, Biedronka aims to maintain its position as a price leader. The company plans to continue investing in competitive pricing strategies to create savings opportunities for Polish consumers.

During the third quarter, Biedronka opened 104 new stores and renovated 156 existing locations, resulting in a total of 3,659 outlets by the end of September 2024, up from 3,473 a year earlier. The chain’s capital expenditures (capex) for this period amounted to €253 million, representing 39% of the Group’s total outlays, compared to €344 million or 44% of total outlays in the previous year.

The total retail space for Biedronka has also expanded, reaching 2.61 million sqm, compared to 2.45 million sqm in 2023. This growth reflects Biedronka’s commitment to strengthening its presence in the Polish retail market.

Source: Biedronka and IBSnews