Coverage partner: Castorama

How are consumer expectations and choices evolving? How can the retail sector adapt to these changes? How can supply and service standards be upheld in the face of global platforms? What can provide the retail sector with a competitive advantage? How can its strengths be consolidated, and in what ways can new technologies support this?

These questions were explored by participants in the debate ‘Can European retail win the war for customers against global platforms without losing its identity and standards?’, held in the Rzeczpospolita Lounge at the 34th Economic Forum in Karpacz.

Dr Albert Tomaszewski from AI Lab and the Institute of Management at the Warsaw School of Economics noted that the market is undergoing significant changes, with two issues being particularly important. The first is the spread of technology and online shopping, supported by advances in logistics – without today’s logistics, online sales would look completely different. The second concerns shifts in consumer habits: fewer people now do a large weekly shop, and younger generations are more inclined towards convenience shopping, with many treating the shop as an extension of their fridge.

At the same time, Dr Tomaszewski highlighted that traditional shopping offers an opportunity to leave the house and break routine. There is also the aspect of impulse buying, which often surprises consumers but is deliberately stimulated by retailers, for example by placing selected products at checkouts.

The Polish retail market is developing dynamically, with ongoing change expected: some chains will consolidate, others will exit, and new players will emerge. Dr Tomaszewski also stressed the growing importance of technological development – particularly artificial intelligence – which will be increasingly employed by both online platforms and traditional retailers to personalise offerings and enhance the shopping experience. Alongside this, loyalty campaigns, such as promotions involving soft toy giveaways, remain an important tool for attracting customers.

Michał Obiegała, president of BP Europa SE, Polish branch, discussed the evolution of the sales offer. He observed that in the past, people stopped at petrol stations only briefly – just long enough to refuel and pay. Later, fuel sales were complemented by convenience products. Today, it is entirely normal for customers to spend more time at petrol stations, enjoying a coffee or a hot dog after refuelling. On longer journeys, this naturally combines with a break and rest, contributing to road safety. Retail has thus become part of a broader business still centred on fuel sales.

‘Petrol stations are changing, becoming what we call traveller service centres or hubs, where the convenience segment, namely shops, is playing an increasingly important role. They are now part of petrol stations but also of a business model that helps diversify the risks associated with fuel trading. These are no longer places where customers come solely to buy fuel or, in the future, whichever energy source powers their cars. Whether it is charging electric vehicles or other energy carriers, we do not yet know’, said Michał Obiegała.

One thing is certain – retail customers will continue to seek convenience, wanting to obtain everything in one place. Fleet customers, by contrast, expect efficient digital service, a single invoice, and full cost control, along with support in settling VAT and excise duty. ‘Digitisation and direct communication with both B2C and B2B customers will help to meet these expectations. This is what we are striving for, and it is one of the reasons why we launched our app. We already have over 1.5 million downloads’, emphasised the CEO of BP Poland.

He also highlighted another important point: ‘The energy transition is central to change; we must balance medium- and long-term strategic goals. The business we run must address current consumer needs, while also taking into account the long-term changes that will unfold in 10, 15, 20 or 30 years’, said Michał Obiegała.

Commenting on the relationship between online and traditional commerce, Nils Swolkień, CEO of Castorama, noted that most in-store purchases now begin online: customers search for the products they need on the internet but complete the purchase offline.

‘Success or failure in retail will depend on online presence. Today, depending on the industry, between 70 and 80 per cent of the purchasing process in shops begins elsewhere. How individual retailers implement their digital visibility determines whether the purchase concludes online or offline, which leads us to the issue of multichannel retailing. Convenience is closely tied to this’, said Nils Swolkień.