Networks of non-food discount stores to profit from the Coronavirus and crisis of shopping malls
Source:wiadomoscihandlowe.pl
From:Taiwan Trade Center, Warsaw
Update Time:2020/07/03
The upcoming crisis for non-food discount stores such as Pepco, Action, Tedi and Dealz chains can be a great opportunity. - In a crisis, consumers reduce spending on non-food items first. The industrial offer of discount chains, including their own brands in this situation may be met with increased interest - Bartosz Bolecki, Retail Business Unit Director at PMR tells the service wiadomoscihandlowe.pl.
Even before the pandemic, there was a visible process of dynamic transformation in non-food discount stores: In terms of products, companies focused on improving products’ quality. In terms of premises’ attractiveness, stores focused on locations - like Pepco, that entered the prestigious Warsaw’s shopping malls and invested in the quality of their products.
Now, with more and more vacancy in shopping malls, and more clothing and footwear companies limiting the number of stores in shopping centers, discounters who have recently appeared on the Polish market can have their chance to locate stores in shopping centers. Their offer can perfectly match the tenant-mix of operating commercial facilities.
Young wolves of Polish trade such as Action, Tedi and Dealz have their chance to enter previously closed world of shopping malls, especially that negotiating good lease terms in the current situation is much easier. However, the networks must remember about a very careful analysis of the location, because some shopping centers due to the pandemic and economic recession may have big problems staying on the market.
For example, Action chain currently has 67 stores, and it is announced that it may exceed 100 branches this year. - Despite the difficulties, we are consistently striving to achieve our goals for 2020 - i.e. further expansion into the country and strengthen our presence in southwest Poland, says Sławomir Nitek, general director of Action Polska.
In other words, the crisis may indeed accelerate the development of the non-food discount stores: vacancy rate in galleries will undoubtedly grow, leaving place for aforementioned business format. In times of crisis, consumers' natural behavior is primarily to reduce spending on non-food items. However, the purchase of certain products, e.g. for children, cannot be abandoned, and then the offer of non-food discount stores is very attractive to consumers. Another factor supporting growth of this retail channel is fact, that while limiting expenses, consumers often focus on small changes at home instead of expensive renovations - here, too, a wide range of products at very low prices will be ideally suited to the customers’ needs.
Source:https://www.wiadomoscihandlowe.pl/artykuly/sieci-dyskontow-przemyslowych-zyskaja-na-koronakry,64443