As foreign hypermarket operators race to win market share in Poland, a row has broken out over proposals to give local authorities (Gminas) greater powers to control planning permission for new developments. Tesco said it was concerned new laws might prevent foreign entrants from "operating on a level playing field," but hoped that "exceptionally good relationships" built up with local Gminas would help its cause. "We are not overly concerned at this stage," said a spokeswoman. Given Poland is an EU entry candidate, any activities that could be regarded as anti-competitive will come under careful scrutiny in Brussels, she observed. Under the new law, local retailers would have a say in what a proposed hypermarket might be able to sell. Carrefour has also expressed fears that the law, which has yet to be ratified, will severely limit the expansion of foreign retailers in Poland. By 2002, almost 50% of Tesco's selling space will be overseas. "There is growing competition in central Europe," added its spokeswoman, "but there are also huge pockets of opportunity and expansion. "Poland forms a fundamental plank of our international strategy going forward." Poland is a highly lucrative emerging market and Tesco's aggressive store opening plan mirrors those of competitors Ahold and Casino, which have announced ambitious expansion plans in eastern Europe. A further six Tesco stores will open in Poland before the end of the year to add to its existing 37. Ahold is also stepping up its Polish operations, with four new hypermall' shopping centres planned by the New Year featuring hypermarkets, DIY stores and a number of independent outlets. "Hypermarkets are a new and exciting commodity in Poland," said one source. "Everyone is trying to get a foot in the door." {{NEWS }}

Topics