Tesco and Metro Group streamlining operations in Poland | Progresiv
Tesco and Metro Group are reviewing profitability of their store concepts what leads to store closure. This will be a necessary move for many retailers in Poland as the market will become even more competitive and challenging - the Government will introduce a new tax law in the autumn. 
Tesco is going to close seven small stores (with sales are up to 1,000 square metre) by September 2016 after it closed six stores in March 2015. The store closures have been going on for quite some time as the company looks to drive store profitability.
Tesco aims to streamlines its business in Central and Easter Europe. In the Czech Republic, Tesco closed 20% of its convenience stores (28 Zabka stores) in its 2015/2016 financial year.
Makro Cash&Carry has decided to reduce operating business model complexity and focus on active distribution instead. Makro announced that it will close one full-size cash and carry store and 10 out of 11 Punkt stores, due to limited growth potential and business performance. Punkt stores had sales area around 2,500 square meters with assortment limited to grocery. The format accounted to less than 4% of Makro’s revenues in Poland. Metro will also adjust store sizes and the organisational structure of its remaining stores.
Polish lower house of Parliament approves retail tax. Retailers present in Poland will pay 0.8% on monthly revenues between PLN 17m - PLN 170m and 1.4% on sales exceeding PLN 170m per month as initially planned. Revenues below PLN 17m per month will be tax free. Sales to other companies will not be taxed. The project still needs to be approved by the Senate and signed into law by the Polish President and is expected to be implemented from September 2016. (www.igd.com)
