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Poland: Textile discounter KiK plans further opportunities

A few months ago, there was a lot of talk about social shopping centers, which not only gave the opportunity to do shopping, but also took care of our entertainment, allowed us to spend our time in an interesting way. Will this trend continue in the "postovid era"? Will tenants themselves still choose such spaces for the locations of their stores? We are talking about this with Robert Boguszewski, general director of the KiK chain, which will soon reach 350 stores in Poland and announce further development. KiK is the exhibitor of the autumn edition of SCF 2020 CEE.


KiK Polska closed the first half of 2020 with 342 stores. This means that the estimated increase in the brand's sales area over the last year was 24%. - exactly as the year before. Does KiK intend to maintain this result also next year?


Robert Boguszewski, general director of the KiK chain of stores:

We 're developing. For several years, we have been gradually increasing the number of our stores in Poland and there is no indication that this approach will change. Probably if it were not for the pandemic, we could talk today about growth at a level other than 24%, but the focus should be on the "here and now". Looking through the prism of the last six months, I can say that we can only be limited by issues beyond our control. We want to expand our network, and what's more, we know that the customers themselves also count on it thanks to the involvement of the KiK team, the first "post-covid" openings of new KiK stores took place just a few days after the abolition of restrictions. This only confirms that we are prepared to implement our plans.


Location diversification

Until now, KiK stores could be found both in large shopping malls, smaller convenience centers, as well as in the form of independent stores located on promenades - has the pandemic brought some conclusions which locations are more favorable from the perspective of KiK?


Our strategy for many years assumes a certain diversification of locations. In practice, this means that we choose different places, both smaller and larger towns, large galleries and small retail parks. There is one condition: the customer remains at the center of our activities. The team of our expansion managers is perfectly aware of what locations are suitable for us and, taking into account certain standards, finds places where we can be as close to our clients as possible, looking at the last months our conviction was strengthened, that such diversity of location is the right strategy. Thanks to this, some of our stores could function despite the prevailing restrictions, of course with all safety rules. In addition, convenience centers, due to their specificity, will return to "normal" tracks faster than large mixed-use shopping centers. This does not mean that the market will flip 180 degrees and start withdrawing from this concept. Even before the appearance of COVID-19, a parallel development of extreme areas of the market could be observed, both small retail parks with several tenants, as well as shopping centers with a huge portfolio of shops, a foodcourt zone, co-working space and a cinema. KiK has appeared in both types of locations and we are not going to give it up, as evidenced by, for example, the recent openings, last month we visited Brzęczka Park in Mysłowice, on the one hand, and in Galeria Kupiecka in Otwock, on the other. that the market will turn 180 degrees and start withdrawing from this concept. Even before the appearance of COVID-19, a parallel development of extreme areas of the market could be observed, both small retail parks with several tenants, as well as shopping centers with a huge portfolio of shops, a foodcourt zone, co-working space and a cinema. KiK has appeared in both types of locations and we are not going to give it up, as evidenced by, for example, the recent openings, last month we visited Brzęczka Park in Mysłowice, on the one hand, and in Galeria Kupiecka in Otwock, on the other. that the market will turn 180 degrees and start withdrawing from this concept. Even before the appearance of COVID-19, a parallel development of extreme areas of the market could be observed, both small retail parks with several tenants, as well as shopping centers with a huge portfolio of shops, a foodcourt zone, co-working space and a cinema. KiK has appeared in both types of locations and we are not going to give it up, as evidenced by, for example, the recent openings, last month we visited Brzęczka Park in Mysłowice, on the one hand, and in Galeria Kupiecka in Otwock, on the other. as well as shopping centers with a huge portfolio of stores, a foodcourt zone, a co-working space and a cinema. KiK has appeared in both types of locations and we are not going to give it up, as evidenced by, for example, the recent openings, last month we visited Brzęczka Park in Mysłowice, on the one hand, and in Galeria Kupiecka in Otwock, on the other. as well as shopping centers with a huge portfolio of stores, a foodcourt zone, a co-working space and a cinema. KiK has appeared in both types of locations and we are not going to give it up, as evidenced by, for example, the recent openings, last month we visited Brzęczka Park in Mysłowice, on the one hand, and Galeria Kupiecka in Otwock, on the other.


Opportunity for discounters

Discounters or "value retailers" are places that were very popular even before the pandemic. Although the expectations of Poles were gradually growing, the attractive price still played a large role. Especially when it comes to the so-called basic products that form the basis of our textile range. Customers were interested in them and that has not changed. Perhaps, apart from using them for more or less formal styling, there is another use, basic products are also great at home office. Through our pricing policy, which is included in the slogan "constantly low prices", we do not force the customer to compromise, at KiK you can buy what is fashionable, of good quality and inexpensive. And this actually allows us to look at the present stage with calm, in which the retail sector has entered. However, when commenting on the recent events, I would rather say that they did not so much help in our development as they did not hinder it, sums up the Director General of KiK.


KiK invariably implements its development plans on the Polish market. Although the brand declares an individualized approach to determining the potential of each location, some guidelines remain unchanged. Among them, retail space, preferably at least 650 sq m, comfortable access to a minimum of 15 parking spaces, as well as the possibility of an attractive external display of goods. The vicinity of grocery operators, drugstores or popular specialist stores is also important. Only in August, the chain of stores will debut in Chorzów, Wieliczka and Solec Kujawski. What's next? Time will tell, but KiK emphasizes that it is open to business proposals that fit in with the above concept.



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