Central and Eastern Europe: five developments from the region

Law changes in Poland to affect grocery retailing

In separate developments, Poland is starting 2022 with law changes that will affect the country’s grocery retailing industry. The first has seen the government close a loophole that enabled retailers to continue to operate stores on Sundays, through offering postal services. Several retailers looked to get around the ban on Sunday trading, which was introduced in 2018 and restricted trading to all but seven Sundays annually, by offering postal services. Following the loophole’s closure retailers have said they will shut stores on Sundays in future, while those operating through franchises have said they will leave it up to franchisees to decide, as other exemptions exist for them separately from company-owned stores.

Meanwhile, to help stem the effects of inflation, the government has suspended VAT on food, gas, and fertiliser. Following the government’s announcement, the country’s Prime Minister, Mateusz Morawiecki, said retailers would need to lower their prices to support shoppers accordingly. Following the move retailers like Aldi, Auchan, Lidl, and Kaufland have announced plans to pass on the savings to shoppers.

Carrefour extends partnership with Decathlon to Poland

Carrefour has extended its partnership with Decathlon to Poland after the retailers collaborated in other countries. Decathlon opened its first shop-in-shop concept, as part of an initial trial, under the Decathlon Basic banner, in a Carrefour hypermarket. The 180 sq. m shop-in-shop stocks a range of 2,000 Decathlon products and will help Carrefour repurpose space in a potentially more profitable way. For Decathlon it will enable the retailer to add sales areas in smaller cities and towns where its own presence may not work.

X5 appoints new general director for Pyaterochka proximity stores

Russia-based X5 has appointed Vladislav Kurbatov, who was previously the general director of Perekrestok supermarkets, as the general director for its Pyaterochka proximity stores. Kurbatov will replace Sergei Goncharov, who will leave the company. In the short term X5 said Goncharov will remain with the company as an advisor to X5’s chief executive, Igor Shekhterman, to ensure a smooth transition. Commenting on the step, Shekhterman said:

Looking ahead to the next stage of market development, our proximity store format should consolidate its leadership position and focus on increasing sales density, improving price perception, and increasing efficiency by reducing costs. Vladislav Kurbatov will address these tasks.

Maxima expands vegan range

Maxima in Latvia has expanded its range of Meistara Markas ready-to-eat vegan meals. The retailer said the nine new meals have been added, initially at one store before being extended to more in the short term, as interest in such meals grows in the country. The Meistara Markas range will now include 18 vegan ready-made options and more than 50 vegetarian ready-made meals.

Looking for more inspiration on vegan options?

Subscribers can access our presentation Veganuary UK, 2022: is plant-based the future?

PKN Orlen to sell petrol forecourts to Mol Group

As part of a wider acquisition, locally based PKN Orlen has sold 417 Lotus petrol forecourts to Mol, which will enable PKN to acquire Grupa Lotos. Mol will pay US$610m for the forecourts, which includes 270 company owned sites, with the acquisition seeing it become the country’s third-largest motor fuel retailer and enable it to create a nationwide store estate.

Looking for more insight on Central and Eastern Europe?

Subscribers can access our Central and Eastern Europe hub page and read the Central and Eastern Europe retail outlook 2022 for our view on five key trends driving growth in the region.