At the end of July 2023, a significant drop in the share price of Jeronimo Martins, the owner of the popular Polish supermarket chain Biedronka, was observed on the Lisbon Stock Exchange. According to Portuguese media, including SIC television and the weekly newspaper „Expresso,” this event demonstrates the growing dependence of the Portuguese economy on the Polish market. The decline in the stock value was a result of poorer financial performance by Biedronka, which alarmed investors and analysts.
Intense Competition in the Polish Market
One of the main reasons for Jeronimo Martins’ weaker performance in Poland is the increasing competition in the retail market. The Portuguese have noted that in recent years, many new players have emerged, effectively competing with Biedronka for the Polish consumer. Additionally, declining spending by Polish households on food has also contributed to the deterioration in the financial results of the chain.
Uncertain Economic Situation in Poland
According to the weekly „Expresso,” Poland is currently in a challenging economic situation. On one hand, its largest trading partner, Germany, is facing economic problems, which affects Polish exports. On the other hand, the war in Ukraine poses a serious challenge to the Polish economy, forcing it to adapt and reorganize its supply chains.
Poland as a Logistics Hub for Ukraine’s Reconstruction
Despite these challenges, Poland has become a key logistics hub for supporting Ukraine in the reconstruction of the country after the war damage. The Myaicep portal, run by the Portuguese Agency for Investment and Foreign Trade (AICEP), highlights the development of transport infrastructure in Poland, particularly in regions bordering Ukraine. This strategic location makes Poland an attractive market for investments, especially in the industrial, pharmaceutical, and energy sectors.
Trade between Portugal and Poland
In 2023, Portugal sold goods and services to Poland worth a total of 1.1 billion euros, while imports from Poland to Portugal amounted to over 1.9 billion euros. The main goods exported from Portugal to Poland were machinery, cars, metals, and agricultural products, while imports from Poland were dominated by machinery, cars, and chemical products.
This trade exchange underscores the importance of economic relations between these two countries and the growing role of Poland as a key trading partner for Portugal.
