According to a Cushman & Wakefield report, the retail real estate sector saw the continued expansion of retail parks in 2022, accounting for 70% of new supply delivered to the market. Despite many challenges related to inflation and general economic uncertainty, 14 new brands made their debut in Poland during the year. However, the next few months may experience a downturn in consumer sentiment, with lower retail sales, and in turn, reduced turnover for retail tenants.
2022 saw many challenges for consumers. The rising inflation rate had a detrimental effect on Poles' disposable income and often forced them to revise their shopping plans. Although overall retail sales grew by 5% year-on-year, the second half of the year was marked by a slowdown in spending. This trend looks set to continue into 2023 with retail sales dropping by up to 5%,
explains Katarzyna Lipka, Head of Research and Consultancy, Cushman & Wakefield.
Supply – retail parks dominate
Last year further reinforced the popularity of convenient and fast shopping. This was also reflected in the new space that was delivered to the market. 2022 was again dominated by small retail parks, which claimed a 70 percent share of new supply. New retail warehouses were also very popular among developers, accounting for a quarter of new space. As a result, total retail space in Poland at the end of 2022 exceeded 15.9 million sqm,
comments Ewa Derlatka-Chilewicz, retail expert, Cushman & Wakefield.
Demand – new brands enter Poland
Retail tenants facing challenges
Particularly good Q4 results were recorded by large shopping centers, which were visited by 5% more customers than in pre-pandemic 2019. Cumulative footfall figures for 2022 were 4% up on 2019 and as much as 24% up on 2021,
comments Paulina Bauer, Head of Retail, Asset Management, Cushman & Wakefield.
Unfortunately, falls in Poles’ disposable income and deteriorating market sentiment will negatively affect shopping plans and thus the turnover of tenants in retail facilities. The structure of spending will also change – the amount of money spent on goods and services outside the basket of basic goods, such as furniture, consumer electronics, eating out, travel and sports memberships will decrease,
adds Paulina Bauer.
Rental dynamics in retail park segment driven by solid tenant demand
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