Poland as Europe's growth champion: why the takeover of the local supermarket Zabka says a lot

Poland as Europe's growth champion: why the takeover of neighborhood supermarket Zabka says a lot You can't miss them in Poland, because they are everywhere: Zabka stores. Sometimes opposite each other, or in the same building. These characteristic neighborhood supermarkets with green facades and logos sell everything: from simple groceries to drinks and a hot dog. The popularity of Zabka is indicative of the thriving Polish economy in several aspects. 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 Alimentation Couche-Tard wants to acquire the supermarket chain for about 7.5 billion euros. The takeover is expected to be finalized in December. Yes, a Zabka store is more expensive than a regular supermarket. "But you save time with it," says Rafal. He is a stylist, on his way to work, and just had coffee at a neighborhood supermarket in the center of Warsaw. "I also have one in my apartment building, where I do my groceries every day." Growth champion of Europe In the Netherlands, we may know similar stores, such as Hema or Albert Heijn to Go. But Zabka appears 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 in Warsaw. "Poland has undergone a profound transformation from a poorly performing, bankrupt communist economy, where no sausage could be found in the shops, to a country where investing in consumer goods is the right choice," he tells the NOS. The Polish economy has grown steadily, but after joining the EU in 2004, it grew even faster. The European market offered many opportunities for a country with high production capacity. EU subsidies also contributed to economic development, including the financing of the construction of highways. The transformation of Poland is seen and felt everywhere. One high-rise building is being built after another in Warsaw. Since 2022, the capital of Poland even has the tallest building in the European Union: the Varso Tower, which is 310 meters high including the spire. Economic growth The economic growth of Poland 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. Poland is relatively well-educated, wants to work long hours, but labor in many sectors is still half as cheap as in the Netherlands, states Piatkowski. "But they want to become as rich as the Dutch." Moreover, the Polish economy is strongly diversified and therefore not dependent on a single sector. This 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 that attracts foreign interest. InPost, which became large with lockers for packages, was acquired by a large consortium in which the American package delivery company FedEx plays a major role. According to economist Piatkowski, this shows that Poland has seized a solid place on the economic map of the world. "People realize that Poland is a reliable and safe place to invest." Challenges However, Poland also faces significant economic challenges. There is a towering budget deficit that the government cannot control. Furthermore, they also struggle with labor shortages in Poland. Rising wages also cause Poland to be less competitive gradually. But for now, the expectation is that growth will continue. The reputation of Poland is also growing internationally. In December, the country was invited as a guest to the G20 summit in Miami, where the leaders of the world's largest economies meet. Piotr (40) comes out with a pet from Zabka. He just bought a phone card and a strip that was in the bonus. Yes, that budget deficit is a bit worrying. But otherwise, Piotr is positive about the future of his country. Warsaw is, in his opinion, unrecognizable compared to the nineties. "If someone had left then and came back now, they would be pleasantly surprised," he concludes. "Because the progress is clearly visible."