8 hypermarkets in eight cities
In 2015, after the decision of the Office of Competition and Consumer Protection, Auchan, purchasing the Real chain from the Metro Group, was obliged to sell 8 hypermarkets in order not to violate the concentration rules. In 2015, Rella Investment took over the management of eight hypermarkets in the cities of Czeladź, Legnica, Wałbrzych, Rzeszów, Białystok, Szczecin, Bielsko-Biała, Ełk and Sosnowiec from Auchan and runs them under the bi1 brand (except for the location in Sosnowiec). The b1 sign belongs to the Schiever Group in France, which also runs two Auchan hypermarkets in Poland.
bi1 losses for many years
In 2023, Rella Investments allocated funds for the modernization and development of its assets. Expenditures on fixed assets under construction amounted to PLN 4,612,336.19 and concerned already operating locations.
The value of the company's fixed assets in 2023 amounted to PLN 27,443,869.25 net and the loss from previous years: – PLN 75,334,407.18. The company also has debt due to long-term loans granted to the company by its shareholder SCHIEVER INTERNATIONAL SAS in the amount of PLN 91,476,321.97.
The report states that "the financial data indicate good financial condition. Both now and in the foreseeable future, there are no significant risks related to concerns about the company's ability to meet its obligations."
The company's shareholders are: Schiever International SAS – 225 shares and IMMO SI Polska – 75 shares.
Fewer employees in stores, more in administration
At the end of 2023, the company employs 781 people, including: administrative employees: 87 people and hall employees: 694 people. A year earlier, 795 people worked in the company. This means a reduction in the number of employees by 14 employees, with 13 new positions in the administration, but 27 positions lost in stores (721 in 2022).
Declines in the hypermarket segment
Last year, hypermarkets recorded the lowest customer traffic of all formats. According to the Proxi.cloud and UCE RESEARCH study, hypermarkets recorded traffic that was as much as 8.1 percent lower. This format also lost the most unique customers – there were 3.4% fewer of them.
– Hypermarkets may have seen the largest decline in traffic due to their size and location, which often requires longer visits. They are also losing visitors the most due to the development of online shopping, says Dr. Jolanta Tkaczyk from the Kozminski University.
Consumers quickly buy only what they need after reducing their basket of goods. These needs are met by discount stores that offer the necessary assortment, promotions and good-quality own brands.
– Medium and small stores, if they offered good or even comparable prices to hypermarkets, won. In times of high prices, hypermarkets are perceived as "money grabbers" because they encourage people to buy products that they had not previously planned to buy. Moreover, walking to them takes a lot of time, and since they are usually located further from the housing estates, you have to pay for fuel to get to them – commented on the Proxi.cloud and UCE RESEARCH study, Dr. Faliński, vice-president of the Economic Dialogue Forum Association, former long-time Director General of the Polish Trade and Distribution Organization.
– The market share of hypermarkets will continue to decline. Issues such as price and flexibility will be decisive for the format's popularity, as very diverse local markets become difficult for large-area chains to manage, the expert added.
