Polish retail sector expands as European grocery margins stay under pressure

A McKinsey & Company report on European grocery retail in 2026 shows sales growth of 3.4% while volume growth lagged at 0.6%, keeping profit margins under pressure. Private‑label products now account for 40% of market value and CEOs cite cost and margin pressure as top priorities, with AI and automation ranked second despite limited measurable impact. “For retailers selling grocery, 2026 will test the ability to adapt to market demands,” said Marek Nowakowski, Business Development Manager at Exorigo‑Upos.

In Poland, the retail market continues robust growth. A CBRE analysis highlights fashion as the most active category for tenant openings, with strong performance also in home furnishings and food. The sector added 85 new home‑goods stores, 72 food outlets, 70 service points and 52 restaurants last year. Tenants are increasingly focusing on high‑street, residential‑hub and experiential concepts to engage shoppers. “Stable growth and strong domestic demand give a good outlook,” noted Anna Wysocka, head of the retail division at CBRE. Overall retail sales rose 5% year‑on‑year, reinforcing Poland’s position as the largest consumer market in Central‑Eastern Europe and attracting numerous new domestic and international brands.