Wal-Mart could look to Poland for expansion

US retail giant Wal-Mart could be set to enter the Polish retail sector as part of a possible expansion into Eastern Europe, according to reports in the Polish media.

Polish broadsheet Rzeczpospolita reports that Wal-Mart who has shown an interest in entering the country's growing retail market through greenfield investment, with French chain Auchan believed its most likely target.

Wal-Mart are already prevalent in Western European countries like the UK and Germany, through chains like Asda, and the news could mark the beginnings of their expansion into Eastern Europe.

While Wal-Mart declined to comment on the speculation, the news would follow similar moves by its rivals earlier in the year.

In July, Tesco invested more than €104m into acquiring the Leader Price chain in the country from French group Casino in a bid to increase its 5.5 per cent market share.

Tesco's acquisitions came just a few months after Carrefour, one of the world largest retailers, announced annual investments of around €65-€78m over five years to increase its presence in the country.

With 32 hypermarkets and 71 supermarkets in Poland already, Carrefour appears confident the market has further room to grow.

The presence of these stores is yet another indication of the strength of retail markets in Eastern Europe, though there are some worries that the market is becoming saturated.

Consultancy group PriceWaterhouseCoopers' (PWC) said recently that retailers could not afford to ignore emerging Eastern European markets – but it warned that only the most exploratory and adaptable food retailers would succeed.

With over 7,000 stores in economies as diverse as Asia, Europe and South America, Wal-Mart has shown it has already managed to adapt to specific regional tastes.

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