Sales
€21,500 M
(+22.3%)
# Stores
3,569
LFL
+14.2%
EBITDA
€1,838 M
(+19.4%)
CAPEX
€559 M
Highlights of the Year
- Opened 203 stores and refurbished 375 locations
- Surpassed 1,000 stores offering service counters of meat & delicatessen products
- More than 700 stores with photovoltaic panels
- 85% of the stores with self-checkouts
- Main sponsorship of the 31st WOŚP* Final, for the second consecutive year
- Extension of the sponsorship agreement with the Polish Football Association until 2026
- Hosted a Sustainability Conference under the theme “Energy for Life”
*One of the biggest social actions in Poland (for more than 30 years) aimed at crowdfunding for improvement of medical standards in Polish hospitals.
Message from the CEO
At Biedronka, we entered 2023 stronger and with the same priorities as in previous years: to lead also in price opportunities provided for our consumers, offering them quality at the best price on the market.
Throughout the year, we were unwavering in this determination and increased investment in promotional actions and price reductions, continuing to earn the trust and loyalty of Polish consumers in an environment where high inflation in the country exacerbated pressures on families, especially in the first nine months of the year.
In recent years, although price has been even more top-of-mind in our strategy, the growing innovation in our assortment is undeniable, as is the quality and efficiency of the store format, the flexibility of the expansion strategy and the approach to new distribution channels.
In 2023 we have launched in our Private Brand assortment 222 products and reformulated 123. The variety and quality of these offer has evolved significantly, playing appropriately a differentiating role in the banner’s assortment, with perishables being the second pillar of differentiation recognised by consumers.
We opened 203 new stores in the year and today we have a flexibility of format that enables us to competitively break into smaller markets, clearly extending Biedronka’s potential in this country.
The refurbishment programme, together with the store openings, is introducing an enhanced store format with different solutions aimed at improving operations and the shopping experience for consumers, while incorporating environmental concerns, particularly in terms of greater energy efficiency.
In e-commerce, Biedronka’s presence has improved remarkably since its launch in 2020, both through the reach of the operation and the assortment available, with a special note on the Biek operation, which offers ultra-fast deliveries and which, in 2023, the second year of its operation, saw notable growth, strengthening our foothold in this channel.
I would like to thank all the teams who, at all levels, have taken Biedronka to a new level of competitiveness and who are taking us into 2024 with confidence.
In a market that is expected to be even more competitive given the prospects of food deflation, in a simultaneous context of cost inflation, we have more tools to respond, with innovation and intensity, working every day to continue to be consumers’ first choice, in order to grow sales and protect profitability.
Luís Araújo
CEO Biedronka
More information, particularly about our sustainability initiatives, is provided under “Sustainability” in this Report.
Performance
In Poland, 2023 started with food inflation at record high-levels, which progressively decreased until December, and with consumers naturally cautious, paying even more attention to prices and promotions. Once again, Biedronka maintained an intense promotional dynamic, absorbing part of the price increases demanded by its suppliers and keeping food inflation of its basket below the average registered in the country.
In the market, food retail sales at constant prices fell (-3.1%), while Biedronka grew its volumes throughout the year, continuing to outperform the market and increasing its market share.
In local currency, sales grew by 18.2%, with a LFL of 14.2%. In euros, sales reached 21.5 billion, 22.3% above the previous year. This performance also incorporated high inflation in the basket.
Net sales
(€ Million)
Due to the slowdown of food inflation, mainly in the second half of the year, and to reinforce its strong position as price leader in Poland, Biedronka launched several promotional campaigns related to decreases of regular prices for daily products. The Company combined two communication streams – Do Biedronki Ide (“I Go to Biedronka”) and Biedronkowe Oszczędności (“Savings with Biedronka”) – to convey that Biedronka low regular prices are a good reason to visit and buy at its stores.
The year started with a strong campaign under the promise Biedronkowe Oszczędności, with Biedronka enhancing its price positioning. The goal was to be more focused, clearer, with one unified savings platform. This was in place throughout the year and worked as a new signature for Biedronka’s price commitment.
Continuing its communication strategy, Biedronka then launched the campaign Do Biedronki Ide, presenting the reasons to go to stores every day, which intended to be a more consumer centric approach, letting customers state the reasons why they come to Biedronka. The main goal of the campaign was to gain new customers and retain current ones.
To strengthen consumers’ loyalty, Biedronka launched a new marketing initiative – BiedronkoLoteria, – a lottery for Moja Biedronka members in order to increase basket and support sales in important categories.
In 2023, Biedronka’s loyalty campaign “Gang Mocniaków – Discover the superpower of good food” presented a unique concept of returning to Biedronka’s roots as the banner focused on nourishing children and healthy food. This campaign wanted to support good food choices, provide information on what to pay attention to when composing meals and the benefits of good products. In this year´s campaign there were 11 heroes (food products) divided in five food categories and, as in the previous year, five books were presented, one for each category. The banner also launched a school activity book with games and stickers for children with educational content about their diet. Finally, it added a gamification in the app – a quiz about healthy eating –, which helped children and adults check their knowledge on good daily diets, and developed a website with articles for parents, written in cooperation with a dietician, and tips on how to prepare a child’s diet depending on age.
During the year, the banner continued to develop its mobile application, counting already with more than 10 million customers, enhancing and improving several actions, namely the Shakeomat and the ‘Just for You’ section’, where users can check for special offers.
Focusing on its relationship with customers, Biedronka started to send marketing and informative communication in order to increase the engagement with the brand.
At the end of the year, Biedronka had 18 micro-fulfilment centres exclusively dedicated to the ultra-fast delivery service – Biek –, a partnership initiated in 2021.
To strengthen innovation in its Private Brand, the Company continued to invest in developing new products and expanding existing ranges, such as Go Vege and Go Active products, promoting in both cases several contests with the aim to engage costumers with the products.
To increase the attractiveness and assortment of meat & delicatessen products, Biedronka continued to invest in installing assisted service counters for these categories, ending the year with 1,076 stores offering this service, 315 more than in the previous year.
Keeping its focus on operational efficiency and on shopping experience, throughout the year Biedronka introduced self-checkouts in 313 stores. At the end of 2023, it had 3,021 stores with this equipment.
On the ongoing sustainability path, the Company developed several actions. Being energy consumption an important variable to improve its network’s efficiency, by the end of the year Biedronka had already 728 stores with photovoltaic panels producing energy.
Biedronka and the Polish Football Association (PZPN) extended the sponsorship agreement existing since 2010 until July 31, 2026. As an official sponsor, Biedronka will support both the first Polish women’s and men’s national teams, as well as youth teams from 15 to 21 years old, also remaining the official supplier of fresh vegetables and fruits for the national team. The cooperation between Go Active brand and PZPN started in January 2023 and aims to create unique product solutions that serve as promoters of an active lifestyle. Besides the Private Brand Department and Quality Department of Biedronka, the team is composed of PZPN nutritionists and national team’s chefs. In 2023, eight products (three isotonic, three vitamin waters and two gels) were launched under the partnership with a dedicated packaging design.
The significant sales growth led EBITDA to increase by 19.4% (+15.4% in local currency). The investment in price, combined with cost inflation, put pressure on the EBITDA margin, which was reduced to 8.5% (8.8% in 2022).
Maintaining the focus on its investment plan, Biedronka opened 203 stores (174 net additions) and refurbished 375 locations in the year, investing 559 million euros.
Awards and recognitions of note
Food & Retail Award 2023 for being a market leader in Poland, identifying consumer needs and offering solutions and services in a wide range of areas.
Business Insider Polska Award for fighting inflation and creating opportunities for the consumers to save money, like the platform Biedronkowe Oszczędności (Biedronka Savings) and the promotional campaign “Liczą się fakty. Codziennie niskie ceny tylko w Biedronce” (Facts count. Everyday low prices are only at Biedronka).
Retail Champion in the “Best Loyalty Programme 2023” category, a distinction awarded by the consumers and received for the third time in the Retail Champion – Chosen by Consumers, conducted by GfK Polonia.