How many people visit supermarkets in Poland? Supermarkets in Poland have experienced a surge in visitors ever since the start of the COVID-19 pandemic. Some estimates suggest visitor numbers have increased by nearly a third as more people flock to retail outlets to stock up on essential items. With the current economic uncertainty and disruption to supply chains, it is important to understand how this trend has shifted the landscape for supermarkets in this market.
Despite the prevalent hardship, anecdotal evidence suggests demand for groceries have been stable. This has been supported by recently released figures from the Central Office of Statistics (COS) which states that total retail sales surged by 8.8% in the second quarter of 2020 compared to the same quarter in 2019. Supermarkets have been one of the main drivers of this growth. This could suggest shoppers were more likely to make their food and beverage purchases at supermarkets over other non-grocery outlets.
It is not only the quantity of visits that has increased, but also the average spend. Recent survey data highlights that the average grocery basket size in Poland is up 3.3% compared to 3.2% in the previous quarter. The spike in spending could be attributed to increased costs to cover minimum orders imposed by supermarkets in order to make the most of their limited personnel resources, as well as growing demand for hygiene and safety goods, some of which have been in short supply.
If the economy continues to remain uncertain it will be important to be mindful of consumer spending patterns as these could be indicative of overall economic confidence. In addition, supermarkets are under pressure from customers to serve them as quickly as possible. While automation and new technology is helping in some cases, the challenge of staying up-to-date with the demands of a rapidly changing environment will be key for the industry’s success.
The increase in overall supermarket visits has not been without its challenges. The need for more frequent visits has put a strain on the workforce, the majority of which are typically employed on part-time contracts. This has been exacerbated by the space constraints caused by the pandemic, as more and more customers make trips to the store. The need for staff to strictly adhere to social distancing is also creating operational difficulties in terms of managing queues and efficiently restocking shelves when they are depleted.
What has been clear from the evidence is that supermarkets have been one of the main driving forces of the retail sector during the pandemic. As the economy slowly recovers, it will be important to understand the changing behaviors of shoppers in order to best serve their needs. This includes providing more convenient shopping and payment options, making sure that supermarkets are open for longer hours, and offering additional services such as online ordering and home delivery.
Assortments of Product Sale
A survey conducted in October 2020 found that the varieties of the products on offer in supermarkets in Poland had increased in comparison to the same period the year before. This could be attributed to the rise in demand for goods related to hygiene and safety, as well as a surge in consumer interest in goods related to home improvement. Furthermore, survey data from COS suggests that sales of luxury goods also enjoyed a healthy increase, with total sales of such items growing by five percent.
The significant increase in product sales across different categories can be attributed to a number of factors. Shoppers may have been motivated to make additional purchases due to the lack of certainty in the economic environment. By stocking up on essential items, shoppers may also have felt the need to replace items they thought to be limited in order to future proof themselves against potential disruption.
Supermarket retailers are responding to the surge in consumer demand by widening their selection of products to match the changing needs of shoppers. Supermarket chains are introducing new products such as home delivery and single-serve portions in order to match the needs of the new customer base. Even with the abundance of online retail, supermarkets have found ways to meet customer demands by introducing new technologies such as automated check-outs and contactless payments.
The surge in product sales is a positive indication that supermarkets in Poland are adapting to the changing needs of their customers. Furthermore, the range of new products on offer is evidence of a shift towards customer-centricity in the sector. Nevertheless, it is important to understand the sources of this surge in order to respond to the changing demands of shoppers in a sustainable way.
Impact of the Online Retail
In order to compete with the surge in online retailers, supermarkets in Poland are having to confront the added difficulty of managing resources alongside an increasingly digital customer base. Recent survey data suggests shoppers are using multiple channels to purchase items, with online ordering and home delivery becoming increasingly popular.
Online ordering of groceries is also becoming more commonplace with the help of food delivery apps such as Foodpanda, which launched in Poland in March 2020. This has put significant pressure on supermarkets to provide competitive delivery services. However, the demand for online deliveries is a capacity strain on existing resources due to the significant amount of time involved in providing such services.
The growth of online retail has also increased competition as shoppers increasingly compare prices and promotions across multiple outlets, including online-only retailers. In response to this, supermarkets are offering promotions such as discounts and bonus services to incentivize customers to choose offline retail.
Recent evidence suggests that the majority of shoppers are opting for the convenience of online ordering even when they could have gone to the supermarket in-store, with 76% of shoppers asserting that they would use online grocery services in the future. This is an indication that supermarkets are having to reassess their online offering in order to meet consumer demands and remain competitive.
Economic Impact
The shift to online retail is having an impact on the bottom line of supermarket businesses. Despite the increase in visitations and average spend, profits have remained largely flat as costs related to personnel and additional hygiene products reduce anticipated revenues. In addition, supermarkets have had to bear the brunt of additional shipping and delivery costs associated with online orders.
For example, despite the increase in average basket size in shopping trips to supermarkets, profits have remained largely flat due to higher costs associated with hygiene products such as hand sanitizers and face masks. Furthermore, the cost of labor has increased significantly due to the need for additional staff to handle the increased customer traffic.
Recent data from COS also suggests that supermarkets have had to further reduce prices in order to remain competitive. This could be due to the increasingly cost conscious mentality of shoppers in the midst of economic disruption, as well as the threat posed by online retailers offering promotional offers. However, despite the reduced profits, supermarkets in Poland have proved resilient to external shocks thanks to the increased demand for its goods.
Future Outlook
Given the current economic uncertainty, there is a need to remain vigilant for any further shifts in visits to supermarkets and viewing them as a barometer of consumer confidence. Survey data from COS suggests that the majority of shoppers anticipate that their need for shopping trips to supermarkets will remain roughly the same in the foreseeable future.
The recent spike in demand for groceries and other essential items could also be indicative of an increased willingness to shop in-store. This could be due to the fact that the safety protocols introduced by supermarket chains could be reassuring to shoppers, as well as the need for a more direct and personal shopping experience.
There is evidence to suggest that shoppers may be more likely to visit supermarkets if they can find a convenient and stress free experience. Supermarkets in Poland can focus on accommodating the changing needs of customers by introducing more personalized services, such as offering dedicated times for grocery collection or providing more discounts for certain orders.
In conclusion, supermarkets in Poland have adapted to the rapid changes brought by the pandemic by responding to the needs of the new customer base, as well as the rise in online shopping. The increase in visits to supermarkets in such a short period of time is indicative of the resilience of this sector and its ability to remain a key driver of the economy. Supermarkets in Poland now have a unique opportunity to leverage the current trends for sustainable growth in the coming years.
