Hard times for Polish shoe sector
07/09/2009
A new report from market research company PMR shows that Polish shoe and apparel retailers have really been struggling since the start of the year. Sales have fallen dramatically and the cost of running businesses has risen, and there are fears that many will now be forced to close.
According to the report, entitled ‘Clothing and footwear retail market in Poland 2009. Market analysis and development forecast for 2009–2011’, the clothing and footwear market will face a 6% decline in value this year to $8.8 billion. However, things should look up for the sector in 2010, with PMR predicting a 5% rise in sales.
“With the more optimistic situation in the economy, the overall consumer climate will improve as well and consumers will be again more willing to spend on footwear and clothing. This view was also shared by retailers who participated in research carried out by PMR for the purpose of the report: two-thirds of respondents expect improvement in the market situation in 2010,” according to Patrycja Nalepa, retail analyst at PMR.
Ms Nalepa believes some good may yet come from the financial downturn. “The crisis may create an opportunity for one-of-a-kind conditions enabling the takeover of companies which have fallen on hard times,” she says. “In addition, it is now easier to find a good location and to enter a lease on good terms and conditions, as shopping centres are now looking for new tenants to replace the liquidated shops. The crisis will be beneficial also for those companies that offer inexpensive shoes as their goods are now in highest demand.”
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