Retail parks have been the biggest beneficiaries of the structural retail changes in Poland over the last ten years. Their number has doubled and increased their share in total retail stock by 4 p.p. In H1 2020, developers completed nearly 148,000 sqm of modern retail space in large scale projects (GLA>5,000 sqm). Of this new supply, 67% was delivered in the shape of eight new retail parks and three extensions of existing schemes. Almost 450,000 sqm of GLA is still under construction with initial completion dates set for 2020 and 2021. Retail parks account for nearly 26% of this volume.
The niche for convenience centres was a response to both customer needs which had moved towards quick everyday shopping, and the increasing saturation of the shopping centre market. This trend has been further underpinned by the pandemic situation. Under lockdown at home, consumers turned to local options. Some have rediscovered their neighbourhoods and begun to appreciate small family-run businesses and local products. However, value retailers, such as Tedi, KiK, Dealz, are among those who have the largest number of stores in this asset class. What’s more, these brands often start their national expansion from smaller cities,
explains Anna Wysocka, Head of Retail Agency, JLL Poland.
In the first half of 2020, we opened two retail parks in Jawor and Płock. In August, the facility in Solec Kujawski was launched. By December, we plan to deliver Vendo Parks in Częstochowa, Zielonka, Łuków and Władysławowo. Over the past few years, we have been consistently strengthening the Vendo Park chain in Poland. In 2020, we achieved a growth rate of seven commissioned facilities per year and we intend to maintain this level into the future. Our strategy is to invest in small towns, with a well-thought out tenant mix. Trei’s Vendo Parks offer brands the opportunity to make their debut in the markets we enter,
Jacek Wesołowski, Managing Director, Trei Real Estate Poland.
Convenience centres play the dominant role in small towns, where they are often the only retail project in their respective markets, accounting for 63% of the retail park stock in towns of below 50,000 residents, while regional retail parks are found mostly in major agglomerations. Traditional retail parks are spread across all cities. However, 50% of their GLA is in small towns and the second biggest share of GLA – almost 20% - complements the retail offering in major metropolitan areas,
adds Joanna Tomczyk, Senior Analyst, JLL Poland.
Small scale retail formats reacted quickly to the pandemic. Trei was one of three companies that represented the majority of retail park owners operating in Poland in talks with tenants. Since April, negotiations have been held with 38 chains and companies which operate over 900 stores in more than 200 locations across the country. During the lockdown, the clothing and sports industries were significantly affected, while food and drugstores performed significantly better. Therefore, we have developed individual solutions, tailored to the individual financial condition of the companies. Thanks to the negotiations we held, by the end of May, all retail parks in the country were already reopened,
adds Jacek Wesołowski, Managing Director, Trei Real Estate Poland.
