Poland has appeared prominent across numerous publications of late, especially following the ICSC’s recent European Conference in Warsaw. I thought I would shine a light on some of the current developments occurring across the country, and what the future retail market is looking like.
Last September, Poland introduced a new tax on retail sales. Tax Partner at RSM Poland, Piotr Liss said ‘This will not decrease the number of shopping centres in Poland. The tax will increase the competitiveness of small and medium-sized businesses.’ The article goes on to unfold each family is to receive a monthly benefit of PLN 500 for the second and each consecutive child, this is expected to be injected into the market, allowing retailers to increase their sales.
Echo Polska Properties reported the purchasing power of Warsaw is exceeding the national average of €6,437 by 68%, reaching €10,804 per person/year. This is demonstrating a strong consumer profile for the Polish retail market, giving confidence to future developments.
Cushman & Wakefield’s research reveals extensions to existing centres across Europe will be driving development in 2017-18. Poland is expected to add 546,000 sqm of new shopping centre space in 2017-18, which will be the third largest development pipeline in CEE. Here are some of the developments currently under construction –
As well as new developments, there are consistently new, innovative initiatives being implemented in existing schemes. Magnolia Park has been awarded Poland’s best shopping centre at the recent PRCH Retail Awards. The scheme was built in 2007 and received this award due to their constant evolvement and development of the centre.
Despite the new tax in place, it hasn’t slowed down the development of the commercial property sector as you can see from the list above. With spending power strong, and the volume of developments set to complete over coming months; the Polish retail market is looking towards a very buoyant future!
Kat Whitehead, Senior Marketing Executive, Foundation Recruitment