According to the latest report from global real estate services firm Cushman & Wakefield, the Polish retail market got off to a flying start in 2023, with over 100,000 sq m of new retail space coming on stream in the first quarter of the year and a number of new openings expected to deliver a total of 300,000 sq m. The biggest single challenge facing both retail tenants and landlords is high inflation which has resulted in falling sales for some shopping categories.
Retail sales in constant prices in January 2023 were up by a mere 0.1% year-on-year, but in February 2023 fell by 5.0% compared to 2022. The retail sales performance for February 2023 was the weakest since January 2021, i.e. an interim period between the first and second COVID-19 lockdown. Despite the influx of over 1.5 million Ukrainian refugees who are contributing to the growth of Polish retail, the consumer recession is deepening,
comments Ewa Derlatka-Chilewicz, Retail Market Expert, Cushman & Wakefield.
A surprisingly strong start into the year for retail space supply
“At the end of March 2023, there was over 400,000 sq m of retail space under construction and scheduled for opening in 2023-2024. The new retail space supply will be delivered through 32 new projects, six extensions and three redevelopments, including two hypermarkets vacated by Tesco in Opole and Gorzów Wielkopolski, and the Sukcesja shopping centre in Łódź. It is also worth noting that over 51% of the retail stock under construction will be delivered in smaller cities - those below 100,000 inhabitants,
comments Ewelina Staruch, Analyst, Consulting & Research, Cushman & Wakefield.
The launch of Bawełnianka is undoubtedly one of this year’s most awaited retail openings in Poland. The tenant-mix of this new shopping centre will include well-known and reputable brands such as Apart, Carry, CCC, Cropp, Dealz, Half Price, Hebe, House, Media Expert, Mohito, Ochnik, Pepco, Reserved, Rossmann, Sinsay, Swiss, TEDi, Verona, Vision Express, Vistula, W.Kruk, Via Moda, and Wólczanka. In addition, German-based discounter Woolworth, which is expected to debut on the Polish market this year, will open one of its first Polish stores in Bawełnianka,
says Ada Budynek, Leasing Team Manager, Cushman & Wakefield.
Demand – new brands enter Poland
Footfall and turnover: a stable customer base
High levels of footfall were recorded throughout the first quarter of 2023, with the average up by 18% year-on-year. The largest shopping centres - those sized over 60,000 sq m - outperformed, attracting on average around 860,000 customers per scheme in March 2023, up by 14% compared to the previous year,
says Paulina Bauer, Head of Retail Asset Services, Cushman & Wakefield.
Rental growth driven by strong occupier demand
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 52,000 employees in over 400 offices and approximately 60 countries. In 2022, the firm had revenue of $10.1 billion across core services of property, facilities and project management, leasing, capital markets, and valuation and other services. To learn more, visit www.cushmanwakefield.com