Light years of retail in just twenty-five

In the beginning there were queues. These were followed by open-air markets (one of the most famous – or infamous – was located on pl. Defilad square, in front of the Palace of Culture and Science in Warsaw in the 1990s). Then hypermarkets started to appear and the subsequent generations of shopping centres. Unlike what was on offer at the beginning, there’s certainly nothing to be embarrassed about the latest stage. We can be proud of such centres because they are often even better than the average European standard. However, the most fascinating aspect in the evolution of retail is how it has been shaped by the social transformation that has taken place in the country.

Changes, changes, changes...

Poles are known for their entrepreneurial, ingenious and exceptionally resourceful spirit. The Polish language includes the expression ‘Polak potrafi’ (‘a Pole can do’) – and not without reason. When the market was freed up, many business opportunities followed. This is how many, now thriving, Polish enterprises and retail chains were born. As the nation emerged from the shadow of communism, travel and witnessing the way of life of our Western neighbours only intensified Poles’ desire to live at a similar level. The strong demand and the aspiration to have the best products and to bridge the gap separating us from the Western world at the time, combined to making Poland the focus of attention for international companies. It became a natural field of expansion for retail chains, investors and developers, who discovered a consumer market that had yet to be exploited. “What happened in Poland over the last 25 years is very much a sensation on the European scale. In a short time our market became a major arena for the operations of an exceptional number of international operators, who also ended up in competition with each other for space on the market. In this way Polish retail started to quickly catch up with Western Europe. The road that the retail market has taken is a reflection of the changes in the attitudes of Polish people to shopping over the years,” remarks Aleksandra Zentile-Miller, an architect and director of Chapman Taylor in Warsaw. We have experienced the intense development of hypermarkets because the country seemed promising for large operators. Next, we saw the consolidation of grocery chains, as not all were strong enough to live with the competition, while others changed their strategies or considered the market too shallow. Nowadays, quantity and size has transformed into variety and quality – there is more and more variation when it comes to supermarket models and retail concepts. The Polish market has become highly competitive over these years. The development of retail formats has sped up – from shops made from metal sheeting to modern retail of different types: retail parks, outlet centres, convenience centres and cash-and-carry warehouses. “The retail revolution that took place is still in progress, but it also being influenced other factors – mainly online sales and the extension of the logistical infrastructure,” adds Aleksandra Zentile-Miller. E-commerce will provide a stimulus for developers and investors to consider the changes that are taking place in society when planning new shopping centres.

Responding to the needs

Aleksandra Zentile-Miller emphasises that in order to develop and retain their position on the market (including in terms of the shopping centres vs. high streets debate), Polish shopping centres have to respond to changes in the Polish lifestyle. This has already been seen in the seller-buyer relationship. “At the beginning of the process it was the buyer who chased the product. Such were the times. Then this relationship slowly started to change. Now it is the product that chases the buyer. The development of advertising and modern marketing techniques has led to even fiercer competition in the fight over shoppers. One of the most significant and noticeable consequences of the process is the increasing importance of customer service. This has dramatically changed over the years and the customer is now king. Shoppers today expect a fast, efficient and professional service – and this is something that is now better understood by the majority of shop owners, who are striving to improve the customer satisfaction level,” she explains. In just a quarter of a century since the opening of Poland’s borders, in many respects the Polish retail market is indistinguishable from those in Western Europe. However, it will need to face up to some significant challenges. Developers need to follow carefully what is happening in society. “I can see a shift in how purchasing decisions are made. In the past it was mainly the mother of the family who chose what to buy. Nowadays, in many respects, it’s the increasingly demanding kids who decide. Parents often give in to this pressure. This is driving the demand even further and generating new functional and operational needs. The owners and developers of retail facilities need to take this trend into consideration when planning new projects, developing their concepts and leasing them out,” insists Aleksandra Zentile-Miller. Demographic factors are not without significance, either. “Our society is getting older. The number of pensioners is growing; they are healthier and have more money to spend, possibly also on their children and grandchildren, but mostly on their own needs. Older people now have more time and more ideas about how to spend it. They are people who look after themselves and want to be active. Thus shopping centres now include health clinics and fitness clubs that have special offers for senior citizens,” explains the Polish head of Chapman Taylor.

Getting closer to people

The new challenges facing the retail sector and where these changes are taking place are mainly determined by the shifts in Polish people’s lifestyles. The internet could steal a physical customer away from a mall not so much because of its much broader offer, but also due to its style of functioning. A growing number of people are spending more time at home, sitting in front of the computer or TV, while couriers deliver food and other products to their doorsteps. “Shopping centres should become meeting places, a space for social integration and a real interpersonal contact rather than just visual. They must offer something more than just shopping, otherwise they will simply become display areas,” warns Aleksandra Zentile-Miller. She stresses that a mall that successfully fulfils this role would become a vital part of the local urban space and a permanent fixture. “Depending on the location, shopping centres need to serve a social and public function, developers should plan and architects design an area that is available and open to the public. Centres should be designed with the extra dimension of an educational function, particularly for children as they are more susceptible to losing the contact with the real world in favour of the virtual one, and they do not fully comprehend the challenges of living in the normal world. So a shopping centre could perhaps be a meeting area for re-introducing youngsters to real life. Modern and publically available retail space should support interpersonal contacts, making the idea of meeting another person more attractive than just sitting in front of a computer or playing alone with ones smartphone. Such intriguing ideas, such as creating places where staying in the real world is more interesting and more satisfying than in the virtual world, could be the way forward,” concludes Aleksandra Zentile-Miller.

ARCHITECT AND EXPERT

Aleksandra Zentile-Miller is a Polish director of Chapman Taylor – an international London based architectural practice with 17 offices worldwide, specialising in mixed-use commercial projects. She has worked in different countries, but since the early Nineties has been focused on the CEE region. Currently she is responsible for business development in Poland and managing the Warsaw office. Aleksandra studied architecture at Gdańsk Polytechnic and the University of Westminster. She is a member of professional bodies in both countries (SARP, RIBA, ARB) and has been actively involved in initiatives of the ICSC and the Polish Council of Shopping Centres, of which she is a founding board member and vice-president.