Sunday trade ban to bring losses

Due to the Sunday trading ban we can expect a decrease in retail trade in Poland. On the other hand retail sales were generally higher by 8 pct in 2017, therefore, the anticipated short-term drop of sales could be mitigated within 6-9 months in terms of absolute numbers.

Some of the turnover in Sunday retail trade may be transferred to the remaining days of the week; however, due to the loss of compulsive shopping, i.e. unplanned purchases, overall turnover is predicted to decrease. This will be felt by clothing stores, which are key tenants in shopping centres, electronics & home appliance stores and for all the other products that require time for purchasing decisions to be made as well as for those that benefit from compulsive purchases.

The greatest declines will be incurred by the food & beverage sector within shopping centre food-courts, which cannot make up for lost sales on other days of the week.

In super- and hypermarkets the average sales on Sunday are lower than on the other days of the week, which is why most Sunday sales will probably be spread over the remaining days of the week, with only compulsive sales being lost.

Centres located on the outskirts of cities and those with a limited tenant mix appear to be the most exposed to losses.

Shopping centres that are close to office and residential clusters are expected to see an increase in visits on Thursdays and Mondays in the afternoon and evening hours.

As for large and very large shopping centres, it may be necessary to extend working hours on Fridays and Saturdays and on Thursdays and/or Mondays.

The expected decrease in turnover may result in shopping centre tenants pressing for lower rental rates. However, since rents have been stable or slightly down while sales have grown, a drop in turnover is not expected to require rental reductions.

Outlet centres, which generate about 80 pct of their footfall and turnover at weekends may also see a major decrease in turnover.