Private label market in Poland continues to expand - October 2011

The private label market in Poland was worth PLN 24.6bn in 2010, expanding 17% relative to 2009. The steep market growth was a consequence of a significant increase in the value of sales in supermarkets and hypermarkets, which both expanded by 20%. As a result, both retail formats increased their market shares. Private label sales through discount shops also grew, but less than the year earlier, by 17%. Traditional turnover expanded at a double-digit rate, but still more slowly than the overall market.

Discount stores continue to account for the largest share of the private label market in Poland – in 2010 their share exceeded 55% and, according to our projections, it will continue to increase steadily. The strong growth in sales of private label products is powered by the rapid expansion of discount chains. In 2010, there were over 260 more discount outlets in Poland, several dozen more than the year before. The Biedronka chain posted the largest growth, expanding at a pace of 150-200 shops a year, though its sales growth in 2010 was lower than in prior years. Additionally, the bulk of the product assortment offered by discounters is made up of private labels and in the case of some chains, their share covers almost 90% of the assortment.

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