Lithuanian spending in Poland has been cut by more than half: Lithuanian border-based merchants are happy

Last year, Lithuanian tourists in Poland spent a record 363.7 million euros at the current rate of zloty, which is equivalent to the turnover of a large shopping center. In the past, this was a big problem for companies and the country’s budget: the money left the country, tens of millions of euros were not added to the budget.

But not this year. Already in the first quarter, Lithuanians spent 4.9 percent in Poland. less than last year, and there was a sharp drop of 57 percent in the second quarter.

468 million zlotys or 104.4 million. Euros left Lithuania during the first half of the year, according to data from stat.gov.pl.

Dainius Dundulis, the owner of the Norfa group of companies, confirms that sales near the Polish border are currently higher. However, the stick has another purpose: Latvians, who also liked to shop here, cannot come to Lithuania.

At that time, the shops on the Polish side were empty. In the second quarter, Lithuanians managed to visit Poland 870 thousand times, 42.2 percent less than a year ago.

Traders were even encouraged to support local products

D. Dundulis, owner of the Norfa group of companies, says that closed border sales have increased near the Polish border, but have decreased near Latvia.

“It just came to our attention then. We have an increase in turnover of around 20 percent in the outskirts of Poland.

But consequently the Latvian side declined because Latvians no longer enter. In the past, Latvians used to go shopping in Lithuania. In general, it remained the same. It has increased on one side and decreased on the other ”, says D. Dundulis.

Smaller stores also have higher profits.

“The number of buyers would be difficult to calculate, but the turnover and profitability themselves have really increased, if they really are. All the entrepreneurs around us say the same thing, not just us. Food products in Poland were bought mainly by people from our country, because we are here in Kalvarija, right next to the border, and building materials at the same time, ”says Diana Vasiliauskienė, accountant at the Kalvarijos statybos store.

Ernesta Dapkienė, director of Maxima’s Communication and Image Department, estimates that Maxima’s turnover grew by 4% in the first half of this year, but this growth was “basically determined by the good results of the first quarter.”

“During and after the quarantine, we intensively carried out the ‘Together for Lithuania’ campaign, encouraging people to choose cheaper products from Lithuanian producers. Sales of some Lithuanian products have multiplied by several times, so we feel the strong participation of the Lithuanian people in supporting their country’s business, ”says E. Dapkienė.

She acknowledges that pandemics and quarantine restrictions have affected people’s behavior, and 53 percent acknowledge it. surveyed customers.

“Even after quarantine, people plan their purchases, so they visit stores less often, but buy in large quantities. This habit developed precisely during quarantine, when people restricted their trips from home and tried to buy as many products as possible for a long time at a time. Of course, the flow of buyers after the quarantine has been increasing, but this summer it was 2 to 5 percent. Lower than last year. Meanwhile, the size average shopping cart this summer was about 15 percent. higher than in the corresponding period last year “, – noted E. Dapkienė.

However, not everyone is happy with this trend.

Edvinas Ambrukaitis, marketing manager for Gelsva, which operates the Vynotka chain of stores in Poland and Lithuania, confirmed that stores in Poland are empty, but this has not been felt with stronger sales in Lithuania.

“The wall is closed, it is natural that the flow has fallen, otherwise it cannot be expected, because most of the buyers in Poland were from Lithuania. Of course, we also have Polish buyers, but the flow has decreased, ”says E. Ambrukaitis.

He assured that Vynoteka stores in Poland would continue to operate.

Furthermore, the situation is ambiguous for those who sell household items. Delfi, an employee at the hardware store in Lazdijai, said he didn’t feel much of an impact this year.

“People went mainly to Poland in search of food, so it is clear that they stayed in Lithuania and now shop here. But household items are not a basic necessity, after closing for quarantine, people return very gradually. ”Said the store clerk.

A Lithuanian spends more in Poland than a German

During a visit, a tourist from Lithuania spent an average of 490 zlotys (109 euros) this year, which is more than the Slovaks (326 zlotys), the Czechs (241 zlotys) or even the Germans (401 zlotys). Tourists from Belarus and Ukraine spend more in Poland, leaving an average of PLN 569 and 693 per visit, respectively.

Overall, all foreigners in Poland spent 12 billion zlotys (2.68 billion euros) in the second quarter of this year, which is 45 percent. less than a year ago.

Foreigners go to Poland to buy furniture, building materials, household items and food.

More than every second Lithuanian has traveled more than 50 kilometers to shop in Poland. Another indicator shows that Lithuanians did not go on excursions: three-quarters of those who crossed the border traveled less than 30 kilometers, according to statistics from the Central Statistical Office of Poland in the second quarter.

N. Mačiulis: In May, sales in Lithuania were higher than last year

Swedbank chief economist Nerijus Mačiulis says Lithuanian merchants soon felt the effects of the border closure.

“It just came to our notice then. In March and April, retail sales fell both in Lithuania and across the EU. But what differentiates Lithuania from the EU is that in May, retail trade already exceeded the pre-level level. This recovery was very fast: as soon as the quarantine measures applied were relaxed, the population’s consumption returned to normal cancers, they began to consume as much as they were used to, ”says N. Mačiulis.

According to him, a large number of buyers simply could no longer shop in neighboring countries and some did not want to do so for security reasons.

“As a result, Polish supermarkets lost customers, as well as the local tourism sector, because residents could not vacation abroad, they were on vacation in Lithuania, and here the accommodation and catering sector flourished in Anykščiai, Druskininkai, spa towns , Birštonas, and it will probably have a record year, ”says N. Mačiulis.

He points out that Lithuanian stores on the Polish border can also expect record sales this year.

The trend can be long-lasting

The economist N. Mačiulis does not believe that Lithuanians will rush back to Poland to go shopping.

“In the first place, it was not a mass phenomenon. We estimate that the purchases of the Lithuanian population in Poland could have represented roughly a small percentage of Lithuanian retail trade. It is not the case that the retail trade in Lithuania fluctuates by one tenth up or down, depending on how many Lithuanians go shopping in neighboring countries ”, says N. Mačiulis.

He acknowledges that with the disappearance of the virus threat and travel restrictions, it may be possible to revert to old habits, but for some it may no longer be relevant.

“Perhaps it has just been noticed that there may not be such a great financial benefit, perhaps the trip is not worth it, perhaps it is no longer worth sacrificing a weekend and living well shopping and paying taxes in Lithuania. I don’t think of suddenly everyone is looking for buying opportunities in Poland again. It is possible that those retail chains that were oriented towards Lithuanian customers in Poland may have more difficult times, “thinks N. Mačiulis.