- The Polish retail sector continues to grow rapidly in 2024, particularly in the area of e-commerce, but also thanks to the transformation of stationary trade.
- In 2024, we see a particularly large impact of technology on the industry. According to PMR data, the value of the Polish retail market is expected to reach around PLN 600 billion in 2024, an increase from the previous year.
- At the same time, the importance of eco-friendly activities and sustainable development is growing, which is becoming a key element of companies’ strategies in this sector.
Allegro a leader, but…
The Polish e-commerce market is steadily gaining importance, currently accounting for more than 20% of the total retail market.
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– Allegro remains the leader with 20.3 million real monthly users, representing 61% of Internet users in Poland in August 2024. However, Temu, a Chinese platform, is rapidly closing the gap with the Polish leader. In August 2024, the difference in the number of users between these platforms was already only 2 million. The rapid growth of Temu, which debuted in Poland in 2023, means increasing competition in the e-commerce sector. Competition that has recently become further complicated by the blurring of certain boundaries. All retailers are fighting for the same customer and have a similar value proposition,” points out Tomasz Wozniak, CEO at Future Mind.
The fight for the customer is getting fiercer
– The boundary between quick commerce and e-grocery has long since blurred, and the same is also observed in other areas of e-commerce. An example is the previously typical fashion e-shops like Zalando, Modivo or Sinsay, which currently also offer cosmetics, thus competing with Notino or Hebe. Another important issue is the appearance of more and more retail parks in smaller towns. Currently, the consumer no longer has to drive to a provincial city for a day’s shopping, as he has it at his fingertips. The fight for customers is getting fiercer,” explains Tomasz Wozniak.
Hybrid sales models
Despite the steady growth of online shopping, stationary retail in Poland is also evolving, adopting hybrid sales models. The introduction of click-and-collect options, the development of loyalty programs and the integration of different sales channels have become standard.
Physical stores are investing in artificial intelligence (AI)-based technologies to personalize the shopping experience and better manage inventory. An example is Forecast & Replenishment (F&R) systems, or forecasting and replenishment. Advanced F&R systems use AI to analyze sales data, seasonality and market trends, allowing for accurate demand forecasting and optimal replenishment to increase operational efficiency, Future Mind’s expert adds.
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Tomasz Wozniak stresses that building a competitive advantage without technological transformation, is now virtually impossible, this applies to retail as well, and the industry knows it well.
-AI is used to analyze consumer data to create precise pricing and marketing strategies. And on the operational side, it helps optimize logistics and supply chain management, which is crucial in the food and FMCG sector. Solutions such as warehouse process automation and customer service chatbots are becoming more common, enabling companies to increase operational efficiency, says Tomasz Wozniak.
Increased consumer demands
In his view, this year has also shown how consumer demands are changing rapidly, if only in terms of sustainability, with customers more likely to choose local, organic products and companies that follow sustainable practices. Deliveries using electric vehicles and reducing the use of plastic in packaging are examples of actions that are receiving a positive public response.
An example is InPost’s current position among delivery companies in Poland. Parcel machines, which are a more environmentally friendly form of delivery of goods, are currently the most popular way for Poles to receive their online orders.
Recapitulating, the Polish retail industry in 2024 was a sector full of challenges, but also opportunities. The integration of technology, the development of hybrid models and sustainable practices point to a dynamic future for the market. Competition in the area of e-commerce, represented, for example, by Allegro and Temu, is an important element of change, but it is adaptation to consumer needs and response to global trends that will determine the further development of the sector. Next year is still a time to fight for every moment of customer attention. Standard promotions differentiating prices in shopping baskets by a few zlotys are no longer enough to attract customers. Building loyalty must mean personalization – both to the individual consumer and to entire households, concludes Tomasz Wozniak.
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