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Private Label Market in Poland Continues to Expand Finds PMR Corporate - According to estimates presented in the latest PMR report entitled “Private label in Poland 2011. Market analysis and development forecasts for 2011-2013”
Private Label Market in Poland Continues to Expand Finds PMR Corporate

 

PRZOOM - /newswire/ - Cracow, Malopolskie, Poland, 2011/10/28 - According to estimates presented in the latest PMR report entitled “Private label in Poland 2011. Market analysis and development forecasts for 2011-2013”.

   
 
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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 PMR 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.
In 2010, the private label market clearly grew also thanks to the still perceptible economic slowdown, which more often made Polish consumers purchase retailers’ own brands in search of savings. Given the fact that price remains the key factor in Poles’ purchase decisions, private label products – as a rule more attractively priced than branded products – fit in with the need for more rational spending. Moreover, private label products are much more accepted now by Polish consumers.
Thus, the economic slowdown has contributed to an improvement of not so lustre an image of private label products in Poland, which in the future will bring benefit in higher sales and a larger market share.

PMR anticipate that in 2011 and subsequent years, the private label market will continue to post strong growth, in excess of 20%. The market growth will be fuelled by a growing assortment of private label products in all modern distribution channels, including wholesalers supplying products to traditional retailers. The expansion of discount chains, which will count in excess of 3,000 outlets by end of 2012, will significantly impact the market.

The current, difficult situation on the global market of raw materials might accelerate the development of private label products in Poland even more. The rising prices of food, as well as all other types of fees and charges, will direct people to places with cheaper merchandise on offer and make them reach for more affordable private label products.

This press release is based on information contained in the latest PMR report entitled “Private label in Poland 2011. Market analysis and development forecasts for 2011-2013”.

 
 
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Private Label Market in Poland Continues to Expand Finds PMR Corporate

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