Poland Brick and Mortar returns

Global trends clearly show that the properties that perform the best are those that offer not only goods but also services and a unique customer experience. Poland is part of this trend as can be seen by the ongoing transformation of the domestic retail market – led by the rapid development of retail parks and convenience centres.

The Impacts 2025 report shows that the retail sector is currently undergoing a complex rebound, with individual retail formats showing varying rates of growth. Some are performing very well, while others continue to face the challenges of a changing market and consumer expectations. Investors are increasingly concerned not only about the properties they acquire, but also – and above all – how they manage them, responding to growing tenant demands and the evolving role of brick-and-mortar retail.

For two decades, the retail industry has proven resilient in the face of crises such as the growth of e-commerce, the global financial crisis, the pandemic, inflationary pressures, and growing geopolitical uncertainty. Despite forecasts of wave after wave of store closures, brick-and-mortar stores provided a pleasant surprise – following rent adjustments, retail chains decided to expand in many markets, and rents in attractive locations began to rise.

The Situation in the US

The US market is showing very positive signs of change; shopping mall footfall has increased, and nearly 80 pct of consumer spending is still made in brick-and-mortar stores. Despite growing online sales, brick-and-mortar stores continue to play a significant role in omnichannel strategies, combining various sales and customer contact channels. Strong demand is occurring across various segments – from discount stores and cosmetics to sports and luxury.

However, due to geopolitical and economic instability, some global retail chains are slowing their expansion in the US, focusing on lower-risk markets such as Canada. The growing interest in large markets and the geographic diversification of retail chains demonstrate the need for strategic action in an unstable economy and the need to minimise business risk.

The Situation in Asia

The situation in the Asia-Pacific region is more diverse, despite clear signs of growth. The market is supported by solid economic fundamentals, development potential, and the growing importance of the tourism industry. Athleisure brands (brands combining the comfort of sportswear with an urban, casual style) are expanding their networks in China, and the recovery of tourism in Japan is bolstering luxury goods sales. To minimise investment risk, companies are increasingly choosing to utilise the services of trusted consulting firms, developers, and operators.

Trends in Europe and the Development of the Retail Market

In Europe, the retail sector is also gradually regaining investor confidence. Although the share of institutional investment in the retail segment has declined in recent years, investors are once again paying attention to this sector. There is growing interest in formats that are resistant to economic and consumer changes, such as retail parks and small retail facilities. Such centres benefit from having a grocery store as an anchor tenant or in the immediate vicinity, which further enhances the comprehensive range of goods. There is a noticeable focus on prime properties, offering attractive yields and fitting into many long-term investment portfolios.

Examples of such developments in Europe include the expansion of retail park networks in the UK, significant transactions in the outlet sector, and investments in shopping centres in Spain, where economic growth and tourism are positively impacting market development.

Property owners are increasingly focused on active asset management, which is replacing the traditional leasing model. Management, which includes regular analysis, customer preference research, tenant mix optimisation, and the integration of shopping, services, and the customer experience, is becoming the norm for modern retail. Investments in the modernisation and expansion of food and beverage areas and service areas are also being made. All this confirms that the sector is much more dynamic and growth-oriented than it was just a few years ago.

Active management, adapting the offering to new trends and needs, and extensive marketing activities focused on the customer experience are key to high asset value and profitability today. The growing role of additional services, such as entertainment and recreation, food and beverages, and fashion, creates a unique mix that attracts and engages consumers.

The Polish Retail Mosaic

The retail market in Poland is constantly evolving, adapting to the needs of customers and tenants. Shopping centres are introducing changes among tenants, including by expanding their food and service offerings or introducing retail chains previously absent from the premises. Retail parks are strengthening their position thanks to the possibility of everyday shopping in close proximity and a competitive offer, often in locations where retail offerings were scarce. "We see that the Polish market is aligned with global trends, yet retains its specificity – especially in an era of the growing role of retail parks.
Wioleta Wojtczak, head of research, Savills Polska

She emphasises that the recovery of the retail sector is the result not only of improved consumer sentiment but also of growing investor interest. Poland stands out among other European countries due to the pace of retail sales growth and the dynamic development of convenience formats. This makes our market attractive to both tenants and property owners, who are increasingly investing in modernisation and adapting their spaces to new customer needs.

The Power of Retail Parks

In Poland, the transformation of the retail sector is evident in the rapid expansion of retail parks and convenience centres. These formats are responding to changing social expectations and economic realities. They are close to customers, offer easy access to everyday products, and increasingly serve as meeting places, entertainment, and micro-communities. Poland perfectly aligns with the global trend of redefining brick-and-mortar retail as a service and experience centre, emphasising personalisation, a wide range of services, the development of foodservice, and innovative forms of customer communication.

The Polish market has undergone a significant transformation. Retail parks and convenience centres have proven to be the most resilient to crises, quickly responding to changing customer preferences and tenant expectations. Shopping functions are increasingly being combined with services and entertainment offerings. Significant investment dynamics and growing demand are evident in smaller towns. Brick-and-mortar retail has not only survived but also become more attractive to customers and investors. The key for owners is to respond quickly to trends and manage their facilities flexibly.
Elżbieta Majdan, associate director of property & asset Management retail, Savills Polska