Jéronimo Martins plans Biedronka expansion beyond Poland

Source: Mintel 25-02-2020

Biedronka, the Polish discount supermarket chain owned by Jéronimo Martins, Portugal's second-largest retailer, is preparing to expand to other countries, with Romania top of the list. According to Polish trade reports, Biedronka is eyeing the purchase of a retail chain currently operating in Romania, rather than developing a new business from scratch.

Sales at Biedronka jumped 8.8% in 2019 on a local currency basis, despite new regulation that prohibits supermarkets in Poland from opening on some Sundays.

“The market leading grocer in Poland, Biedronka is something of a national institution. With its discount format and deep understanding of Polish consumers, it has – to date – successfully fought off all attempts by foreign players to dislodge it from the top spot. However, if it chooses to expand into Romania, it will be going up against a dominant Schwarz Group with its Lidl and Kaufland fascias, which already has sales almost double those of its nearest grocery retailing rival. Buying a local, established chain such as Profi would seem the most effective method of market entry but even so it is hard to see the logic behind such a move when the Romanian market is so small, with grocery retail sales less than half those of Poland and no obvious logistical synergies, such as a shared border with Poland.”