As the new year unfolds, Poland grapples with a surge in prices, prompting changes in consumer behavior, particularly among Czech shoppers who have long favored Polish supermarkets like Biedronka for cost-effective purchases. The once substantial savings, often amounting to hundreds or even thousands of crowns, have dwindled to a mere hundreds. Simultaneously, the Czech Republic experiences a comparable upward trend in prices, suggesting a broader economic shift in the region.

Despite the price hikes, Biedronka’s popularity persists, especially in Czech-Polish border areas. In the border town of Kudowa Zdroj, the parking lots of Biedronka are bustling with cars sporting Czech license plates, indicating that even as prices rise, Polish supermarkets remain a preferred destination for larger purchases. In contrast, neighboring Nachod witnesses a decline in footfall, with Biedronka stores appearing less crowded.

The aftermath of Saturday’s shopping frenzy at Biedronka is reminiscent of a locust swarm, as shoppers, fueled by promotional offers, clear shelves rapidly. One customer from Hradec Králové, nearly sixty kilometers away, noted the noticeable change in prices, stating that Polish prices now often align with or minimally differ from Czech ones, a shift from the previous scenario.

Biedronka, responding to the price surge, employs targeted promotions, bundling goods at a fixed price and offering discounts ranging from thirty to fifty percent on the second item. The loyalty app also plays a pivotal role, providing discounts of thirty to nearly sixty percent on a broader range of products.

Poland currently maintains a zero VAT rate on essential food items, including meat, dairy, fruits, and vegetables. However, a return to a five percent VAT rate is anticipated in the first quarter of the year. Despite this potential change, Biedronka customers express confidence that even with adjustments, Polish prices are unlikely to align entirely with Czech ones. The adaptability of consumers and their pursuit of advantageous deals seem to outweigh the influence of external factors, reflecting a pragmatic approach in navigating the evolving economic landscape.

Article by Prague Forum