Poland as Europe's growth champion: why the takeover of neighborhood store Zabka says a lot
They are impossible to miss in Poland because they are everywhere: Zabka stores. Sometimes opposite each other, or in the same building. These characteristic neighborhood stores with green facades and logos sell everything: from simple groceries to drinks and a hotdog.
The popularity of Zabka is indicative in several ways of the thriving Polish economy. It shows that consumers in Poland have more and more money and that the country is becoming increasingly attractive to foreign investors. For example, the Canadian company Alimentation Couche-Tard wants to take over the chain for approximately 7.5 billion euros. The takeover is expected to be completed in December.
Yes, a Zabka store is somewhat more expensive than a regular supermarket. "But you save time with it," says Rafal. He is a stylist, on his way to work and has just gotten coffee at a neighborhood store in the center of Warsaw. "I also have one in my apartment building, where I do my shopping every day."
Growth champion of Europe
In the Netherlands, we might know similar stores, such as Hema or Albert Heijn to Go. But Zabka appears proportionally ten times more often. According to the company, half of the 37 million Poles now live within 500 meters of a Zabka.
Poland is the 'growth champion of Europe,' concludes economist Marcin Piatkowski. He is affiliated with the Kozminski University of Warsaw. "Poland has drastically changed from a poorly performing, bankrupt communist economy, where no sausage could be found in the stores, to a country where investing in consumer goods is the right choice," he says to NOS.
The Polish economy was already growing strongly, but after joining the EU in 2004, it accelerated even more. The European market offered many opportunities for a country with high production capacity. EU subsidies also contributed to economic development, including financing the construction of highways.
The transformation of Poland can be seen and felt everywhere. In Warsaw, one skyscraper after another is being built. Since 2022, the Polish capital even has the tallest building in the European Union: the Varso Tower, which is 310 meters high including its spire.
Economic growth
Poland's economic growth has been above the European average for years. This year, the economy is expected to grow by 3.4 percent, significantly faster than the Netherlands (1.5 percent) and the EU average of 1.4 percent.
Poles are relatively well educated, willing to work long hours, but labor in many sectors is still half as expensive as in the Netherlands, Piatkowski states. "But they want to be just as wealthy as the Dutch." Moreover, the Polish economy is highly diversified and thus not dependent on one sector. That makes the country less vulnerable to problems in individual industries, such as the automotive industry, which is currently struggling.
Zabka is certainly not the only Polish company attracting foreign interest. InPost, which grew with parcel lockers, has been taken over by a large consortium in which the American parcel carrier Fedex plays a major role. According to economist Piatkowski, this shows that Poland has secured a strong position on the world's economic map. "People realize that Poland is a reliable and safe place to invest."
Challenges
Yet Poland also faces major economic challenges. A towering budget deficit that the government cannot seem to control is one. Additionally, Poland also struggles with labor shortages. Rising wages also mean that Poland can gradually compete less well.
But for now, the expectation is that growth will continue. Poland's international stature is also growing. In December, the country has been invited as a guest to the G20 summit in Miami, where the leaders of the world's largest economies meet.
Piotr (40) walks out of Zabka wearing a cap. He has just bought a phone card and a candy bar that was on sale. Yes, that budget deficit is somewhat worrying. But otherwise, Piotr is positive about the future of his country.
According to him, Warsaw is unrecognizable compared to the nineties. "If someone had left then and now returned, he would be pleasantly surprised," he concludes. "Because the progress is clearly visible."