Polish retail market: new retail parks and seven debuts

Approximately 70,000 sq m was added to the Polish retail market in the second quarter of 2023 through schemes over 5,000 sq m, marking the second lowest quarterly result since 2015. This brought total new supply in the year to date to 136,000 sq m,

comments Ewelina Staruch, Analyst, Consulting & Research, Cushman & Wakefield.

At the end of June 2023, there was approximately 465,000 sq m of retail space under construction and scheduled for opening in 2023-24. 365,000 sq m will be delivered through 37 new projects, including 30 retail parks. The remaining 100,000 sq m will be added through extensions and redevelopments,

adds Ewelina Staruch.

The average footfall for shopping centres and retail parks in the second quarter of 2023 was 428,000 per retail scheme, up by 8.6% from the first quarter and 3.0% year-on-year. The average for shopping centres only in the three months to June was up by around 12% year-on-year,

says Ewa Derlatka-Chilewicz, Head of Research, Cushman & Wakefield.

Rising prices continue to weigh heavy on shopping centre turnover levels. Retail sales contracted in the second quarter of 2023. The biggest annual slump in business in constant prices in June was recorded for newspapers and books, as well as and furniture, radio, tv and household appliances (-14.4%). By contrast, fashion and health & beauty - the two categories which are particularly important for shopping centres - saw retail sales remain unchanged year-on-year versus 2022 but improve by 5.5% and 1.6%, respectively, over the month, 

adds Ewa Derlatka-Chilewicz.

There was a marginal uplift in rents over the first quarter for prime units in the best-in-class retail parks. The downturn in the consumer market and lower real turnover levels experienced by tenants are the main drivers behind the downward pressure on non-prime rents,

concludes Paulina Bauer, Head of Asset Services Retail, Cushman & Wakefield.