The year 2023 in trade was marked by high inflation, further cost increases in the supply chain and a slowdown in consumption. Rising commodity prices on global markets, above all the price of energy carriers, were a significant driver of inflation. A key challenge for retailers continued to be the high cost of doing business, which companies attempted to tackle through optimising energy efficiency, the ‘green’ solutions implemented in previous years and the use of automation to streamline processes.
Inflation - which remained in double digits for most of the year - significantly weakened consumer purchasing power. Consumers heavily reduced their spending on food and essential products. The pauperisation of society could be observed through the scourge of so-called poverty-shoplifting. In response to the expectations of Polish families struggling with inflation, companies - as part of their pricing and promotional policies - invested huge resources in various forms of customer support, taking on some of the inflationary pressure.
What will the coming year be like for the retail industry in Poland?
The trade situation in 2024 will be heavily influenced by the new government’s social policies. The extension of zero VAT on food, the retention of the energy shield, the payment of the 800 plus parental benefit and the ‘granny’ benefit, salary increases for teachers and administrative employees, the second valorisation of pensions and the increase in the minimum wage by nearly 20 per cent will potentially have an impact on the growth of real household income, which may provide a boost to private consumption. However, any increase in the minimum wage, on the other hand, results in higher labour costs and an inflationary wage-price spiral.
Retailers’ actions in the coming year will focus on maintaining customer-friendly pricing strategies and continuing sustainability policies, such as: pursuing climate neutrality goals, increasing the positive impact of business on the environment and community, or further digitalising the sector.
The formation of a new government raises the industry’s hopes for the stability of the legislative environment. In order to carry out its mission of supplying citizens with food and essential products without hindrance, business needs the constancy and predictability of the law. Even the smallest legislative change entails financial decisions at the company level, and let us remember that trade is currently subject to an accumulation of more than 20 fiscal burdens, including trade tax. Key regulations include: trading on Sundays, PPWR, ROP, the deposit system, Late Payment Directives. We look forward to robust consultation with the business side.
Renata Juszkiewicz
President of the Board of the POHiD
Inflation - which remained in double digits for most of the year - significantly weakened consumer purchasing power. Consumers heavily reduced their spending on food and essential products. The pauperisation of society could be observed through the scourge of so-called poverty-shoplifting. In response to the expectations of Polish families struggling with inflation, companies - as part of their pricing and promotional policies - invested huge resources in various forms of customer support, taking on some of the inflationary pressure.
What will the coming year be like for the retail industry in Poland?
The trade situation in 2024 will be heavily influenced by the new government’s social policies. The extension of zero VAT on food, the retention of the energy shield, the payment of the 800 plus parental benefit and the ‘granny’ benefit, salary increases for teachers and administrative employees, the second valorisation of pensions and the increase in the minimum wage by nearly 20 per cent will potentially have an impact on the growth of real household income, which may provide a boost to private consumption. However, any increase in the minimum wage, on the other hand, results in higher labour costs and an inflationary wage-price spiral.
Retailers’ actions in the coming year will focus on maintaining customer-friendly pricing strategies and continuing sustainability policies, such as: pursuing climate neutrality goals, increasing the positive impact of business on the environment and community, or further digitalising the sector.
The formation of a new government raises the industry’s hopes for the stability of the legislative environment. In order to carry out its mission of supplying citizens with food and essential products without hindrance, business needs the constancy and predictability of the law. Even the smallest legislative change entails financial decisions at the company level, and let us remember that trade is currently subject to an accumulation of more than 20 fiscal burdens, including trade tax. Key regulations include: trading on Sundays, PPWR, ROP, the deposit system, Late Payment Directives. We look forward to robust consultation with the business side.
Renata Juszkiewicz
President of the Board of the POHiD
