polish Suppliers Detail Brutal Negotiations with Retail Giants Lidl and Biedronka
Warsaw, Poland – October 26, 2023, 10:17 CET - Polish suppliers describe negotiations with discount supermarket chains Lidl and Biedronka as relentlessly demanding, bordering on exploitative, in a climate one entrepreneur likened to “the Wild West.” The pressure exerted by these retail behemoths impacts not only supplier profitability but also the quality of products reaching Polish consumers, according to recent interviews with business leaders.
The dominance of Lidl and Biedronka – controlling roughly 75% of the Polish retail market – gives them unparalleled leverage over suppliers. This power dynamic forces businesses to accept unfavorable terms, including drastically reduced margins, extended payment deadlines, and substantial promotional contributions. The situation is particularly acute for smaller polish companies competing against larger, international corporations. experts predict continued consolidation within the Polish food industry as a direct result of this pressure, possibly limiting consumer choice and innovation.
Bogusław Leśnodorski, a lawyer and investor and owner of Widzew Łódź, characterized the negotiation process as exceptionally difficult. Marek Tronina, creator of the Warsaw Marathon Foundation, echoed this sentiment, highlighting the intense demands placed on suppliers.
the challenges extend beyond price. gregoirem Nitot, president and founder of Sii Polska, noted the meaningful costs associated with meeting the stringent requirements for product placement and promotional campaigns. maciej Nykiel, co-creator of Nekera, described the pressure to constantly lower prices, even when facing rising input costs.
Even established industry figures face significant hurdles. Jakub Faryś, president of the Polish Automotive Industry Association, and Dariusz Mazurkiewicz, president of BLIK, implicitly acknowledged the imbalance of power in retail relationships. Karol pawlak, founder of Vitroflora, revealed the difficulties in maintaining profitability while accommodating retailer demands. Adam Bartkiewicz, co-founder of WB electronics, similarly alluded to the challenging surroundings.
Kacper Nowicki, president of Nomagic, and Karol Myśliński, co-founder of Cylinders, offered further insight into the complexities of navigating these negotiations. The interviews collectively paint a picture of a retail landscape where suppliers are often forced to compromise on quality and innovation simply to remain on supermarket shelves.
