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The level of consumers' income and the development and structure of retail trade on the example of Wielkopolskie and Podlaskie Regions

Kondej Andrzej, Ciechomski Wiesław

Zeszyty Naukowe. Organizacja i Zarządzanie / Politechnika Śląska

2021

z. 152

127--142

Purpose: The paper explores the relationship between income factors and development parameters and the retail structure of the FMCG retail industry. The authors discussed the situation in retail trade in the years 2015-2019 and the evolution of disposable income and expenditure on food and soft drinks. A key part of the work takes into account the impact of income factors on consumer purchasing decisions in terms of choosing the place of shopping. Design/methodology/approach: The study utilises the results of the author’s multi-annual quantitative surveys of the retail market based on available industry sources. The statistical data on income and food expenditure developments and the results of available market research were also contributed. Pearson's linear correlation method was used to analyse the relationship between the dynamics of income factors and selected retail parameters, as well. Findings: As a result of the studies and analyses carried out, it was found that the level of revenue mainly affects the product structure of purchases, but has a limited impact on the place of purchase and, consequently, on the structure of the retail trade. Consumers' decisions are based on several different factors (including non-income ones) and most commercial operators seek to address their offer to the widest possible range of shoppers. Originality/value: The analyzes show that income factors exert a comprehensive but not directly impact on the situation in retail trade. There is no doubt that the steady long-term increase in consumer income is the basis for the development of commercial enterprises. Despite the steady increase in the level of affluence, the vast majority of Polish consumers still combine quality requirements with restrictions on household budgets. As a consequence, it favours the formation of a multi-format structure in retail trade in Poland, as various stores are able to meet the needs of the majority of Polish consumers.