Retail market in Poland

| C B R E R e s e a r c hM a r k e t V i e w Q 4 2 0 1 8

CBRE RESEARCH© CBRE Poland 2018 Q4 2018 MARKET VIEW

M A R K E T V I E W Q 4 2 0 1 8

12 MILLION SQ M GLA OF MODERN RETAIL

SPACE

THIRD PLACE

R E T A I L M A R K E T I N P O L A N D

Figure 1. Retail space supply in Poland

Source: CBRE, Q4, 2018

0

3

6

9

12

15

0

200

400

600

800

1 000

[m s

q m

]

[ths s

q m

]

Yearly supply Under construction

Planned Total supply

CBRE RESEARCH© CBRE Poland 2018 Q4 2018 MARKET VIEW

M A R K E T V I E W Q 4 2 0 1 8

NOT ONLY OUTLET CENTRES

R E T A I L M A R K E T I N P O L A N D

Figure 2. Retail space supply in agglomerations

Source: CBRE, Q4, 2018

0

500

1 000

1 500

2 000

2 500

Szczecin Lodz Krakow Poznan Wroclaw Tri City Silesia Warsaw

[ths s

q m

]

Stock Under construction Building permit

CBRE RESEARCH© CBRE Poland 2018 Q4 2018 MARKET VIEW

M A R K E T V I E W Q 4 2 0 1 8

RENTS

R E T A I L M A R K E T I N P O L A N D

Figure 4. Retail density and purchasing power

in selected cities

Source: CBRE, Q4, 2018/ GfK, 2017

Figure 3. Retail density in agglomerations

(on a city level)

Source: CBRE, Q4, 2018

0

200

400

600

800

1 000

1 200

1 400

Warsaw Szczecin Lodz Krakow Wroclaw Katowice Gdansk Poznan

Density - existing Density - under construction

Density - planned Average density

LublinGdansk

Poznan

Bialystok

Radom

Bydgoszcz

Katowice

Szczecin

Lodz

Krakow

Torun

Wroclaw

Czestochowa

Warsaw

500

600

700

800

900

1 000

1 100

1 200

1 300

5 000 6 000 7 000 8 000 9 000 10 000 11 000 12 000 13 000

Reta

il d

ensity (

sq m

/1,0

00 inhabitants

)

Purchasing power (EUR per capita)

CBRE RESEARCH© CBRE Poland 2018 Q4 2018 MARKET VIEW

M A R K E T V I E W Q 4 2 0 1 8

NEW BRANDS

R E T A I L M A R K E T I N P O L A N D

Figure 5. Selected new international brands on the Polish market in 2018

Retailer name Retailer sector Country of origin City of entry

Armani Exchange Fashion USA Warsaw

Bebe Fashion USA Warsaw

Chanel Health and beauty France Warsaw

Dealz Other Ireland Swarzedz

Fissman Home accessories Russia Warsaw

Fraas Accessories and jewellery Germany Poznan

Kocca Fashion Italy Warsaw

Miniso Other China/ Japan Poznan

San Marina Shoes France Wroclaw

Tedi Other Germany Dabrowa Gornicza

Tempur Homeware USA Warsaw

Ximi Vogue Other China Warsaw

Source: CBRE, Q4, 2018

INVESTMENT MARKET

CBRE RESEARCH© CBRE Poland 2018 Q4 2018 MARKET VIEW

M A R K E T V I E W Q 4 2 0 1 8

R E T A I L M A R K E T I N P O L A N D

“Poland's shopping centre market has reached maturity. Shopping centres have undergone a remarkable metamorphosis since they first made their appearance in the 1990s. Over the years they have evolved from schemes with a dominant hypermarket function, through to gradual expansion of the small store section and emergence of social hubs with a wide entertainment and food and drink offer. Now, the time has come for new retail formats and concepts. Polish consumers are becoming increasingly well-informed as well as demanding. At the same time, their purchasing power is increasing, which translates into a changing lifestyle: we tend to spend more of our free time away from home, we visit restaurants and pop into traditional shops only incidentally, while doing most of our substantial shopping online. Poland's retail market is growing in line with consumer expectations and prevailing global trends; what's ahead of us now is growth of the high street and convenience schemes.”

MAGDALENA FRĄTCZAKSENIOR D IRECTOR | HEAD OF RETAIL SECTOR

A&T SERVICES | CBRE

© CBRE Poland 2018

RESEARCH AND CONSULTANCY

RESEARCH AND CONSULTANCY

VALUATION ADVISORY

CBRE SERVICES FOR THE RETAIL SECTOR

C O N TA C T S

LEASING

SHOPPING CENTRE & HIGH STREETS

LEASING

TENANT REPRESENTATION

INVESTMENT PROPERTIES

ASSET SERVICES

BUILDING CONSULTANCY

CEE RETAIL