Jones Lang LaSalle has published a report, 'Polish Retail Market: Hero or Zero?' presenting trends in the retail real estate sector.
The report provides a concise overview of the current situation in three different aspects of the market, i.e. from an investment, development and occupier angle. It explains the correlation between the three groups of stakeholders and the impact on the sector and retail sales from a macroeconomic perspective, most notably GDP growth and exchange rate.
The report also takes a view on possible future scenarios and the resilience of Polish retail going forward. Among the likely trends are: developers' re-focus to the more secure major Polish agglomerations, retail groups' mergers and acquisitions, growing importance of shopping centre management, faster expansion of retailers positioned down-to-mid market. In addition, low capital-intensive concepts are likely to be a market feature in all aspects.
Commenting on the report, Anna Bartoszewicz-Wnuk, Head of Research, said: "The retail market in Poland is relatively stable. Recent data on GDP growth and retail sales challenges some of the concerns and anxiety around recession and negative retail sales. The market will naturally undergo a qualitative and quantitative change whereby retailers with up-market merchandise will slow the recently rapid expansion and down-to-mid market retailers are likely to take a lead. We expect the overall availability of shopping centre space to grow as a result of structural changes on the market. This is likely to put downward pressures on rents over the next 12-18 months. Rental decrease will not affect the best-performing assets with long trading histories and waiting lists of retailers wishing to lease space."