More and more independent stores offering FMCG products in Poland are deciding to join franchise networks. In 2023, there were almost 55,000 grocery stores on the market, which means a decrease of 2%. compared to the previous year. This includes an increase in the number of chain stores by 5 percentage points (40,300 stores) and a decrease in the number of non-chain stores by 18 percentage points (14,450 stores).
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– Franchising is becoming an attractive solution, offering not only marketing support, but also better commercial conditions. The increase in the number of stores such as Żabka, which operates in the franchise model, is a perfect example of this. Last year, Żabka, which is one of the largest franchise chains in Poland, significantly contributed to the increase in the number of small-format chain stores – comments Michał Maksymiec, director of cooperation with retail chains at Consumer Panel Services GfK.
Franchises win in uncertain times
Joining a franchise and belonging to a chain are clearly assessed as beneficial by operators of small retail formats. According to CPS GfK data, as many as 98 percent small format network operators see clear benefits from this business model. The most frequently mentioned advantages are an attractive product range (32%), using the network's recognition as a magnet to attract customers (31%) and reducing costs related to store equipment (31%).
At the same time, operators formulate specific expectations that coincide with the benefits offered: access to lower prices, better matching of the assortment and refreshing the appearance of the premises. All these elements favor the increase in the number of franchise stores.
– In uncertain times related to inflation, owners of stores operating in the franchise model emphasize additional benefits related to finances and a sense of security. 23 percent of them pay attention to more favorable payment terms, 22 percent incurs lower costs related to supplies, and 21 percent believes that being online makes it easier to survive market crises. These elements additionally strengthen entrepreneurs' belief in the value of belonging to franchise networks in a dynamically changing market environment – adds Michał Maksymiec.
Specialty stores have no reason to worry
An interesting phenomenon on the FMCG market in Poland is the stable number of specialist stores. According to the "Strategic Report", in 2023 there were 22,860 specialized stores, such as fish stores, bakeries, butchers and fruit and vegetable stores. – Even though Poles are increasingly looking for products at attractive prices, in the case of these formats and FMCG segments, the perceived quality and freshness of the product is a key factor determining the choice of where to buy the fresh category. Many consumers are therefore very attached to specialist stores operating close to home, where they can ask for advice from a seller they often know well – sums up the CPS GfK expert.
