Yesterday the President signed the new law restricting the openings of new large floorspace shops. Now to open a shop with more than 400 sqm an agreement from president of the city will be needed, while to open a shop with more than 2k sqm an agreement from the voivodship parliament will be required. Companies will have to pay for these consents.
Our view: We believe the news should have a neutral trading impact on Polish retail companies, though we do not favour the new law. In our opinion, to some extent LPP (having large floorspace shops) could be a beneficiary as the company has almost finished saturation of the Polish market, while its competitors, e.g. H&M still not. Therefore expansion of new players may be more troublesome.