Sponsored by: The Polish economy has undergone significant development over the past ten years, which has affected not only the standard of living of the population, but also the strength of local companies. Many of them have managed to grow to such an extent that their services or products are now well known to customers in the Czech Republic and Slovakia. What is also interesting is that each of these companies operates in a slightly different segment and bases its position on the market on different competitive advantages.
Polish companies that we also encounter here
One example is Benefit Systems, which is known primarily for its MultiSport card, which allows access to thousands of sports and leisure facilities. However, the company's activities are much broader and include other employee benefits. In recent years, Benefit Systems has also been expanding significantly beyond Poland and operates, for example, in the Czech Republic, Slovakia, Bulgaria, Croatia and Turkey. The company also owns several hundred fitness centers. The size of the entire network plays an important role in its business - with a growing number of users, MultiSport becomes more interesting for other establishments, and a larger number of connected locations, in turn, increases the attractiveness of the service for customers. This network effect can be one of the engines of further growth.
Another interesting name is Digital Network, which operates approximately 20,000 advertising spaces in Poland, including classic billboards and modern digital screens. Although the advertising market has significantly shifted to the Internet over the past two decades, outdoor advertising still has its place. Users are exposed to a huge amount of online advertising and have practically stopped perceiving some of it. Digital Network also benefits from its strong position on the domestic market, which has recently been reflected in a significant increase in the price of its shares.
The third example is Żabka, whose small grocery and daily necessities stores are now practically ubiquitous in Poland. The chain has approximately 13,000 stores, which are visited by around four million customers daily. Rapid expansion is mainly enabled by the franchise model. Investors are now also focusing on the offer of the Canadian company Alimentation Couche-Tard, which includes Circle K. It offered PLN 32 per share for all Żabka shares, and the share price is therefore staying close to this level. However, the outcome of the entire transaction can still be influenced by regulators or the possible withdrawal of one of the parties involved.
Dino Polska takes a different approach to retail
Dino Polska also operates in food retail, but its strategy differs significantly from Żabka. Dino stores are larger and the company builds them mainly in smaller towns and villages. It currently operates approximately 3,000 of them in Poland. The main characteristic is the effort to control as much of the entire business as possible. Dino itself buys land, builds its stores on them and then operates them. In addition, it produces part of the energy needed for their operation on its own. Although Żabka and Dino operate in the same segment, their approach to expansion and operation is significantly different.
At the same time, food retail is one of the industries where competition is very strong and margins are relatively low. Chains must constantly respond to pressure on prices, wage growth and other operating costs. Therefore, from the perspective of investors, it is not only the pace of opening new stores that is important, but also the ability of individual companies to convert expansion into long-term sustainable profitability.
Different paths to building a strong position
Benefit Systems, Digital Network, Żabka and Dino Polska clearly demonstrate that the Polish stock market is far from nestonly banks and energy companies. Each of the mentioned companies builds its business on a different principle. Benefit Systems uses the network effect, Digital Network a strong position in the outdoor advertising segment, Żabka a franchise model and Dino Polska control over a significant part of its own business chain. It focuses in more detail on all four companies, their functioning and the current market situation video from XTBIf you would like to buy Polish shares, you can do so completely free of charge via XTB platform.
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