Current issue:
ABOUT BUSINESS - 03.2008
From England to Poland
Elektrolux, the Swedish home appliances manufacturer, closed its factory in the English town of Spennmoor at the end of last year and has moved production to the Polish factory in Świdnica. The company justified the closure by pointing out that the factory had been unprofitable for several years. Five hundred people lost their jobs in Spennmore, which led to protests by local labor unions. The companyęs directors have explained that competition forced them to do what they did. In Poland, Elektrolux has other production plants besides Świdnica, in Siewierz, Żarów and Oława. The company sells its products in 150 countries under the brand names Elektrolux, Zanussi, Eureka and Frigidaire.
A wine under the 'Sobieski' name
The 'Sobieski' company, which belongs to the French capital group Belvedere, will spend 300 million PLN in Poland on investments. The company is counting on an increase in turnover from 2, 3 billion in 2006 to 2, 6 billion. 'Sobieski' is also planning to introduce French wine from the Marie Bazard vineyards, which was taken over by the Belvedere Group in 2006. Around 50-60 types of wine will appear in stores, among which, there will be wines for 11 PLN, as well as those costing 50 or more. They will be distributed by nine wholesale companies belonging to the 'Sobieski' Group, which has 900 thousand employees, who earn a billion a year.
Good prospects
The Polish Minister of Economy has assured us that GDP growth will be maintained at a level of 6% in 2008, controls will be limited, and positive incentives for businesspeople will be introduced. The Minister has also confirmed the Minister of Financeęs earlier statements that laws would be introduced to encourage young retirees to return to the job market. If the price of electricity is stable this year, inflation will be lower than it was last year. According to the Minister of Economy, unemployment will drop to the level of 10% by the end of the year.
Poles are buying more cars
This year, sales of new cars will increase, according to automobile manufacturers. Meanwhile, pessimism is taking hold of the auto industry in the West. Last year, in 2007, Poles bought around 290,000 new cars, which is more than a fifth more than in 2005 and 2006. The rapid influx of used cars that occurred when Poland joined the European Union led to a major collapse of the market and sales of new cars dropped to the lowest level since the first half of the 1990s. Today, companies are expecting Poles' enthusiasm for used cars to drop. It is thought that drivers who have got tired of problems with used cars will come to the new car dealers for new ones.
Poles invest in the East
Russia, Ukraine and Bulgaria are increasingly tempting markets to Polish development companies. Huge demand for modern office and residential space in these countries and low labor costs guarantee quick returns on investments. Currently, the largest of the Polish investments are located in Kiev, where the Polish tycoon, J. W. Construction is operating. The Ukrainian capital is only the starting point of expansion in that country. The Polish company plans to build more housing estates in the Crimea. According to experts, to satisfy the demand in Kiev, two million square meters of residential space would have to be built per year. Ukraine also suffers from a lack of retail and warehouse space. Poles are, somehow, able to handle Ukrainian bureaucracy.
Places for the elegant
Luxurious foreign brands are fighting for space along the main streets of Polish cities. The best places have already been taken, however. Sometimes you have to wait a few years for a place in an attractive location. The lack of retail space is becoming the main barrier to the development of stores with luxury goods. Paradise Group, for instance, is looking for good locations in Poland (and has recently managed to open a store in Poznań), as is Retail Distribution Poland, which distributes brands like Just Cavalli, Versace Jeans, Versace Sport, and Galliano. Galliano successfully opened a store in Warsaw last year on Książęca Street. To companies like Armani, Ermenegildo, Zagna or Burberry, only locations in the center of the city along prestigious streets are of any interest, never stores in shopping centers. Their customers want to shop in comfort without having to push through a crowd of people rushing to a supermarket sale.
Polish banks in England
The British market is becoming increasingly attractive to Polish financial institutions. That is to be expected, since crowds of Polish immigrants earn millions of pounds along the Thames. Poles in Great Britain have their own restaurants, shops, pubs and periodicals. Now, Polish financial institutions are following in their footsteps. The first ones to do it were the British themselves, however. Offers for Poles have appeared in the largest banks ' Barclays, HSBC, and NatWest, and British institutions have started looking for workers who speak fluent Polish. Now, Polish bankers have made a move to conquer the British market. In one day, two Polish banks opened branches in the center of London ' PKO BP and mBank. Other Polish banks have also indicated that they plan to be present in Great Britain.
France Telecom wants more
The Ministry of the Treasury intends to sell the rest of its stock in Telekomunikacja Polska, S.A. (the Polish Telecommunications Company). Today, the department is in possession of less than 4% of the operatoręs stock. The sale is expected to take place in 2009. The main shareholder of Telekomunikacja Polska, France Telecom, owns 47.5%, and has already expressed an interest in buying more.
Elektrolux, the Swedish home appliances manufacturer, closed its factory in the English town of Spennmoor at the end of last year and has moved production to the Polish factory in Świdnica. The company justified the closure by pointing out that the factory had been unprofitable for several years. Five hundred people lost their jobs in Spennmore, which led to protests by local labor unions. The companyęs directors have explained that competition forced them to do what they did. In Poland, Elektrolux has other production plants besides Świdnica, in Siewierz, Żarów and Oława. The company sells its products in 150 countries under the brand names Elektrolux, Zanussi, Eureka and Frigidaire.
A wine under the 'Sobieski' name
The 'Sobieski' company, which belongs to the French capital group Belvedere, will spend 300 million PLN in Poland on investments. The company is counting on an increase in turnover from 2, 3 billion in 2006 to 2, 6 billion. 'Sobieski' is also planning to introduce French wine from the Marie Bazard vineyards, which was taken over by the Belvedere Group in 2006. Around 50-60 types of wine will appear in stores, among which, there will be wines for 11 PLN, as well as those costing 50 or more. They will be distributed by nine wholesale companies belonging to the 'Sobieski' Group, which has 900 thousand employees, who earn a billion a year.
Good prospects
The Polish Minister of Economy has assured us that GDP growth will be maintained at a level of 6% in 2008, controls will be limited, and positive incentives for businesspeople will be introduced. The Minister has also confirmed the Minister of Financeęs earlier statements that laws would be introduced to encourage young retirees to return to the job market. If the price of electricity is stable this year, inflation will be lower than it was last year. According to the Minister of Economy, unemployment will drop to the level of 10% by the end of the year.
Poles are buying more cars
This year, sales of new cars will increase, according to automobile manufacturers. Meanwhile, pessimism is taking hold of the auto industry in the West. Last year, in 2007, Poles bought around 290,000 new cars, which is more than a fifth more than in 2005 and 2006. The rapid influx of used cars that occurred when Poland joined the European Union led to a major collapse of the market and sales of new cars dropped to the lowest level since the first half of the 1990s. Today, companies are expecting Poles' enthusiasm for used cars to drop. It is thought that drivers who have got tired of problems with used cars will come to the new car dealers for new ones.
Poles invest in the East
Russia, Ukraine and Bulgaria are increasingly tempting markets to Polish development companies. Huge demand for modern office and residential space in these countries and low labor costs guarantee quick returns on investments. Currently, the largest of the Polish investments are located in Kiev, where the Polish tycoon, J. W. Construction is operating. The Ukrainian capital is only the starting point of expansion in that country. The Polish company plans to build more housing estates in the Crimea. According to experts, to satisfy the demand in Kiev, two million square meters of residential space would have to be built per year. Ukraine also suffers from a lack of retail and warehouse space. Poles are, somehow, able to handle Ukrainian bureaucracy.
Places for the elegant
Luxurious foreign brands are fighting for space along the main streets of Polish cities. The best places have already been taken, however. Sometimes you have to wait a few years for a place in an attractive location. The lack of retail space is becoming the main barrier to the development of stores with luxury goods. Paradise Group, for instance, is looking for good locations in Poland (and has recently managed to open a store in Poznań), as is Retail Distribution Poland, which distributes brands like Just Cavalli, Versace Jeans, Versace Sport, and Galliano. Galliano successfully opened a store in Warsaw last year on Książęca Street. To companies like Armani, Ermenegildo, Zagna or Burberry, only locations in the center of the city along prestigious streets are of any interest, never stores in shopping centers. Their customers want to shop in comfort without having to push through a crowd of people rushing to a supermarket sale.
Polish banks in England
The British market is becoming increasingly attractive to Polish financial institutions. That is to be expected, since crowds of Polish immigrants earn millions of pounds along the Thames. Poles in Great Britain have their own restaurants, shops, pubs and periodicals. Now, Polish financial institutions are following in their footsteps. The first ones to do it were the British themselves, however. Offers for Poles have appeared in the largest banks ' Barclays, HSBC, and NatWest, and British institutions have started looking for workers who speak fluent Polish. Now, Polish bankers have made a move to conquer the British market. In one day, two Polish banks opened branches in the center of London ' PKO BP and mBank. Other Polish banks have also indicated that they plan to be present in Great Britain.
France Telecom wants more
The Ministry of the Treasury intends to sell the rest of its stock in Telekomunikacja Polska, S.A. (the Polish Telecommunications Company). Today, the department is in possession of less than 4% of the operatoręs stock. The sale is expected to take place in 2009. The main shareholder of Telekomunikacja Polska, France Telecom, owns 47.5%, and has already expressed an interest in buying more.
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Information published at 9 March 2008
