Skip to main content

Three reasons why local stores do well in Poland.

The Financial Times has covered the success of the Eurocash wholesale operation in Poland, a country where independent shops still retain a remarkable 40 per cent share of the grocery market.

"Shopping is not entertainment. Buying yoghurt and iPods in a single shop is not convenient for customers. You need quality shopping close to home," Luis Amaral, the Portuguese owner of the wholesaler, tells the newspaper. It is clear from this that Polish shoppers are not UK shoppers, who regularly put undergarments into the same trolley as their raw poultry.

However, one reason why Polish local shops do well is said to be the poor state of roads in Poland, which makes travelling to a hypermarket difficult. This impact may transfer to the UK as the price of petrol soars and councils cut road maintenance budgets.

Another is that 25 per cent of Poles shop daily and find it easier to go to a neighbourhood shop. The multiples have opened neighbourhood shops but the independents compete on service. "We notice our clients and they tend to do most of their shopping with us," Anna Rowena, owner of a local shop in Warsaw, tells the FT. Again, this is a trend towards top up shopping that is helping local shops in the UK.

Finally, Eurocash invests in the quality of the products it supplies and there has been a big improvement in the quality of the people who go into local retailing. Today's shopkeepers are "much more professional," says Mr Amaral. The trend in the UK is similar, with the leading wholesalers investing heavily in supporting local traders, who are more professional that the previous generation.

Even in Poland the indepedent sector is under pressure, with lots of shop closures. However, Mr Amaral is confident that local stores can maintain a market share in the high 30s. An ambition worth importing from Poland for the UK independent channel!

Comments

Popular posts from this blog

Three secrets of great merchandising

Look at the ceiling and top wall of this McDonalds restaurant. There is a picture of two good looking healthy people having fun and some bright primary colours. Ask yourself what is the purpose of this picture? In the latest issue of Retail Newsagent in a feature on merchandising, Andrew Knight of RI tells its independent readers that they need to think about using sharp pictures of non-packaged products linked to people consuming goods. Perhaps this has been taken to the next level by the fast food chain - that is selling the feeling of being happy and healthy rather than the products. A second, related tip from the same feature is made by most contributors - it is vital to keep windows clean and clear of clutter. "I believe that less is more," says Roli Ranger, a retailer from Ascot, Berkshire. He has posters for promotions in between the windows that are regularly updated and discreet signs in the windows. Third, a highly visible well-stocked promotion at the entranc...

Busy street, empty shop, missed profits

True in part to my New Year resolution, I held a business meeting in an independent coffee shop today just next door to a Starbucks. The cafe was presented well and four staff were busy preparing for the lunchtime rush, at 11am. As my guests were late, I had a half hour overview of footfall on the street outside and in the restaurant. Six customers. Barely enough to form the queue in Starbucks or Pret-a-Manger just down the road. Plus one Italian girl who dropped off her CV. Some people stopped to look at the posters in the window and moved on. The owners seemed quite happy. When I left just after 1215, they were doing brisk trade. However, I have the impression that the business is not working hard enough. It could easily have managed 120 customers between 11 and 12, instead of 12. This is lost profit as the fixed overheads and staff costs are already in place. The owners are clearly busy - perhaps too busy to take time to look at the potential that their cafe has. What shou...

Sticks and stones do hurt

My 17 year-old son returned from a rock festival this week wearing a wristband proudly declaring him 0ver 18. He explained how easy it had been to use someone else's ID to get the identification and said it was ironic that he had not needed to show the over 18 band when buying alcohol. Today, Scottish retailer Abdul Qadar is complaining that public authorities are asking people to lie about their age when making test purchases. What trading standards officers may be forgetting is that the fact that retailers invest in a business premises and trade consistently from it make their job much, much easier. The alternative, a world of markets and itinerant traders, will be far harder to police. Mr Qadar's sense of injustice is fair. Those retailers, like Mr Qadar, who value their investment will seek to trade legally and will not sell alcohol to people under the age of 18. Asking children to lie about their age to local traders is a slander on all retailers.