A significant increase in cross-border retail activity has been observed across Central and Eastern Europe (CEE), driven by limited growth opportunities in saturated domestic markets, according to Colliers' latest report on retail expansion in CEE and the Baltics released at Mapic.
Dominika Jedrak, director, market insights, Poland and CEE said: 'Retailers are capitalising on the shared economic environment, cultural heritage, and linguistic similarities among CEE countries, as well as common consumer preferences, tastes, and fashion trends. This enables them to successfully offer the same product range as in their home markets.
'The geographic proximity of CEE countries also plays a key role in facilitating efficient logistics and supply chain operations. These factors combined make the CEE retail market highly attractive to both local and international retailers.'
As a result, the region has seen significant expansions of retail brands, both planned and completed, originating from within its borders. Local brands are consolidating their presence, while an increasing number of new companies are choosing to expand within the region.
Polish fashion brands have seen notable success across the CEE region. The LPP Group, which owns well-known brands such as Reserved, Sinsay, House, and Cropp, has built a solid presence in the CEE market. Similarly, Pepco, recognised for its clothing and household goods, has been expanding rapidly across the region.
Brands like Half Price, CCC, and Modivo/E-obuwie, have also made significant inroads into the CEE market. Other fashion brands, including Cocodrillo, Wittchen, and Wojas, have similarly been expanding their footprint in the area.
Emerging brands from Czechia and Slovakia e.g. Alza, Tescoma, Alpine Pro and Alensa have expanded into Poland and Hungary. Also, Dr.Max and Fortuna have managed to create a quite significant stake in these markets.
The expansion of brands from the CEE-6 and Baltic regions into Bulgaria has reached a significant scale. Several Polish brands, particularly in the fashion sector, have established a dominant presence in the local market. Value retailer Pepco, for instance, operates over 60 stores in Bulgaria.
The expansion of brands from the CEE-6 region to Romania is prevalent. Fashion brands such as Pepco or brands owned by LPP or CCC dominate the local market.
The most numerous expansion of the Lithuanian brand belongs to grocery chains owned by Maxima Group with almost 1,000 stores in Poland under the brand Stokrotka, 129 in Bulgaria as T-Market, and a presence across the Baltics.
The fitness industry is growing, with consolidation in Poland and the region. Recently, Benefit Systems, owner of the MultiSport programme, announced the acquisition of "Flais" fitness clubs in Bulgaria.
Beyond the CEE region, a variety of food and beverage brands have begun to expand through franchising. For example, Frutisimo and Trdlokafe (abroad known as Twistcafe) are slowly moving into Western markets such as Germany, Austria and Italy. Italy is also a target market for Dr.Max pharmacies, which currently operates approximately 130 stores across the country.
