Poland: Retail chain turnover up 4.1 per cent in 2023 in shopping centres

The best performing categories were entertainment, cafés and restaurants and services. Speciality food shops, electronics and women's, men's and mixed fashion ended 2023 on a negative note.

Turnover of retail and service chains operating in shopping centres monitored by the Retail Institute in Poland increased by 4.1 per cent in 2023 compared to the to the results of 2022. The average turnover at that time was already PLN 944.4/sq m of leasable area, with an inflation rate of 11.4 per cent.The Retail Institute summarises sales values in retail in 2023.

"In 2023, the growth rate of turnover (+4.1 per cent year-on-year) in shopping centres was higher than attendance (+2.5 per cent year-on-year). This means that we visit shopping centres to fulfil specific shopping objectives and to take advantage of the services or entertainment available, while we are less likely to end our visits just looking at the shops and the offers of our favourite brands. This phenomenon is very well illustrated by the results of medium-sized shopping centres (20,000- 39,999 sq.m GLA), which, with a slight increase in attendance of (+1.4 per cent y-o-y) , achieved the highest sales value growth of all formats, reaching +5.5 per cent." Anna Szmeja, president of the Retail Institute, concludes.

The results were positively influenced by the turnover of companies in the category:
 entertainment (+20.4 per cent),
 cafes and restaurants (+9.6 per cent),
 health and beauty services (+35.2 per cent), i.e. hairdresser, manicure-pedicure, massage parlours, spa, and others,
 services (+21.5 per cent), i.e. shoe repair, tailoring services, gift-wrapping, travel agencies, insurance and financial services,
 health and beauty (+6.8 per cent),
 books and multimedia (9.8 per cent),
 home, garden and interior (+2.4 per cent).

Good results were also recorded by shops with fashion offerings (+0.8 per cent), whose success this time consisted of leather goods (+11, 8 per cent), fashion and articles for children and pregnant women (+11.2 per cent), lingerie (+2.2 per cent), jewellery and watches (+1.2 per cent), and footwear (1.9 per cent). On the other hand, specialty food shops (-8.6 per cent), electronics (-3.7 per cent), as well as women's fashion (-2.9 per cent), men's fashion (-1.7 per cent), mixed fashion (-0.3 per cent) and fashion and sporting goods (- 0.6 per cent).

"It is clear from our analyses that shoppers are spending less and less in shopping centres on groceries, fashion and electronics. Whether they are buying these categories more outside of them, we will know this spring after implementing the analyses in all sales channels. Maybe we are buying more online, maybe in retail parks and discount stores. What if there is a change in attitudes and behaviour, e.g. caused by an ageing population or an increase in environmental attitudes? So are the decisions companies are making today based on the right assumptions? There are many questions that we will soon be able to answer unequivocally," says Anna Szmeja.

The Retail Institute has for many months been observing a trend that seems to be gaining ground. Wide-ranging services, which are not so quickly cannibalised by online sales, are doing better and better in shopping centres. These, according to experts, are becoming the drivers of trade and the motivation for visits.

"The high dynamics of change and shopping behaviour have inspired us to expand our analysis and look at trade as a whole. By combining data from shopping centres as well as retail chains and transaction systems, using modern technology and AI (artificial intelligence), we will support our partners in understanding trends and phenomena that have a direct impact on their business. We are open to talks with companies from the eCommerce sector, but also retail parks or convenience stores, which, thanks to huge investments in new technologies and human capital, are biting into more and more categories previously associated mainly with shopping malls," adds Anna Szmeja.

As previously reported by the Retail Institute, mall attendance in 2023 increased by 2.5 per cent.
compared to the 2022 results, but by as much as 10 per cent like for like.