Trade and services

The most important sector in the Polish economy, as in other developed states, is services, which take up more than 40% of GDP. This percentage is growing each year by several percentage points. This dynamically developing sector has become for Poles a chance to develop their own economic activity and many people are taking advantage of the opportunity. New hotels and restaurants have grown up and those that already existed have moved into private hands. The financial sector - as well as banks, many insurance associations, brokerages, investment funds, leasing firms and financial intermediaries - which had practically not existed before, have also come into life. Consulting and auditing companies arose, joining the group of the fast-developing service sector, as did services connected with communications and transportation. Huge progress has been made in the advertising and promotional services. Today, after more than 10 years of transformation, Poles can take advantage of those services available to citizens in every modern state.

Trade was perhaps the fastest area to react to the changes that took place in 1989 and the changes here are the most visible. Ten years ago the average Poles was not even aware of the term ‘hypermarket,’ as no shops of this kind existed in Poland. Today on the Polish market are all types of trade networks.

Such shops have been set up by the French (Auchan, Carrefour, E.Leclerc, Géant) and Germans (Billa, HIT, Real). Large industrial networks have also cropped up, such as IKEA, Rossman, Praktiker and Obi. There is also no shortage of discount stores. Trade is only smaller in GDP terms than services and industry. Alongside the transformation in Poland there was avalanche of shops and bars. The ownership structure changed rapidly in this area of the economy. In the course of one decade the share of private companies in the trade sector has grown from a level of about a dozen percent to more than 20%. Of the SMEs, which are so vital to the Polish economy, about one half sell goods. The share of trade in market turnover in the Polish economy in recent years has stayed at a level of over 50%.

Wholesale trade in Poland has also undergone continuous changes. In 2000, the number of warehouses was reduced, though total floor space rose. This is a positive phenomenon, as large warehouses mean lower costs and the chance to adopt modern technologies. This in turn means better conditions for preserving goods. Speed in realising orders has also had a large significance. In 2000, on the consumer goods market the first Internet warehouse appeared. On its web pages one can find the warehouse’s offers and order goods via the net. Of course, the latest wholesalers, run by foreign firms, with plenty of capital at their disposal, and support of their investors, have revolutionalised the market, building huge shops like Makro Cash & Carry and Selgros. Apart from these, on the market are ex-offices of foreign trade and companies servicing concrete branches. Goods exchanges help farmers, with the largest being in Warsaw and Poznań. In the warehouse segment, in contrast to the 1980s, the majority of turnover is realised by private companies. State-owned firms make up not much over 5% of the total value of goods.

Electronic trade, alongside the growth in the use of the Internet, has become increasingly popular. This form of selling has also become popular in Poland. Internet cafes, music and computer stores have arisen. In 2000, e-trade turnover reached 50 million zlotys. This is very small in comparison to the overall retail sales market, but the area is still very young in Poland. According to CAIB analysts, by 2005 Internet trade turnover could reach 16 billion zlotys. B2C, the net’s equivalent of B2B, is also developing dynamically. Many Internet portals have been set up where enterprises can present and sell their wares. This electronic sector is also taking its first steps. The Internet is a relatively new phenomenon and still the number of people interested is few as is access to fast and cheap net connections. The 2002 law on electronic signatures will increase Internet transaction safety, in turn leading to further development.

An important branch of the economy is the fairs industry. Each year more than 230 fairs are held in Poland. The largest and most popular exhibitions and events take place in Poznań - from the International Dog Exhibition to the Poznań Motor Show and IT fair - Infosystem. The Annual International Poznań Fair has the greatest prestige and richest history going back to the inter-war years. 2003 was the 75th event. Warsaw also has its own International Fairs Centre. Poland also takes an active part in international exhibitions. Poland’s presentation at EXPO 2000 in Hannover was very successful. The Polish pavilion was the most colourful and most visited. During the whole event more than two million people visited the Polish presentation. And from a questionnaire conducted, as many as 85% of respondents said would like to visit Poland itself.