Industry Apparel Poland

MarketLine Industry Profile
Apparel Retail in
Poland
May 2015
Reference Code: 0151-2005
Publication Date: May 2015
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MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED
Poland - Apparel Retail 0151 - 2005 - 2014
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EXECUTIVE SUMMARY
Market value
The Polish apparel retail industry grew by 4.9% in 2014 to reach a value of $8.2 billion.
Market value forecast

In 2019, the Polish apparel retail industry is forecast to have a value of $10.4 billion, an increase of 26.8% since 2014.
Category segmentation
Womenswear is the largest segment of the apparel retail industry in Poland, accounting for 49.5% of the industry's total
value.
Geography segmentation
Poland accounts for 2% of the European apparel retail industry value.
Market rivalry
Moderate levels of overall growth in recent years have reduced rivalry to a moderate level in the Polish apparel retail
industry.

TABLE OF CONTENTS
Executive Summary ....................................................................................................................................................... 2
Market value............................................................................................................................................................... 2
Market value forecast ................................................................................................................................................. 2
Category segmentation .............................................................................................................................................. 2
Geography segmentation ........................................................................................................................................... 2
Market rivalry.............................................................................................................................................................. 2
Market Overview ............................................................................................................................................................ 7
Market definition ......................................................................................................................................................... 7
Market analysis .......................................................................................................................................................... 7
Market Data ................................................................................................................................................................... 8
Market value............................................................................................................................................................... 8
Market Segmentation ..................................................................................................................................................... 9
Category segmentation .............................................................................................................................................. 9
Geography segmentation ......................................................................................................................................... 10
Market distribution .................................................................................................................................................... 11
Market Outlook ............................................................................................................................................................. 12
Market value forecast ............................................................................................................................................... 12
Five Forces Analysis .................................................................................................................................................... 13
Summary .................................................................................................................................................................. 13
Buyer power ............................................................................................................................................................. 14
Supplier power ......................................................................................................................................................... 15
New entrants ............................................................................................................................................................ 16
Threat of substitutes................................................................................................................................................. 17
Degree of rivalry ....................................................................................................................................................... 18
Leading Companies ..................................................................................................................................................... 19
Industria de Diseno Textil, S.A. ................................................................................................................................ 19
SMYK Sp. z o.o. ....................................................................................................................................................... 23
The TJX Companies, Inc. ......................................................................................................................................... 24
H & M Hennes & Mauritz AB .................................................................................................................................... 27
Macroeconomic Indicators ........................................................................................................................................... 30
Country Data ............................................................................................................................................................ 30
Methodology................................................................................................................................................................. 32

Industry associations ................................................................................................................................................ 33
Related MarketLine research ................................................................................................................................... 33
Appendix ...................................................................................................................................................................... 34
About MarketLine ..................................................................................................................................................... 34

LIST OF TABLES
Table 1: Poland apparel retail industry value: $ billion, 2010–14 ................................................................................... 8
Table 2: Poland apparel retail industry category segmentation: $ billion, 2014 .............................................................. 9
Table 3: Poland apparel retail industry geography segmentation: $ billion, 2014 ........................................................ 10
Table 4: Poland apparel retail industry distribution: % share, by value, 2014 .............................................................. 11
Table 5: Poland apparel retail industry value forecast: $ billion, 2014–19.................................................................... 12
Table 6: Industria de Diseno Textil, S.A.: key facts ...................................................................................................... 19
Table 7: Industria de Diseno Textil, S.A.: key financials ($) ......................................................................................... 20
Table 8: Industria de Diseno Textil, S.A.: key financials (€) ......................................................................................... 20
Table 9: Industria de Diseno Textil, S.A.: key financial ratios ....................................................................................... 21
Table 10: SMYK Sp. z o.o.: key facts ........................................................................................................................... 23
Table 11: The TJX Companies, Inc.: key facts ............................................................................................................. 24
Table 12: The TJX Companies, Inc.: key financials ($) ................................................................................................ 25
Table 13: The TJX Companies, Inc.: key financial ratios ............................................................................................. 25
Table 14: H & M Hennes & Mauritz AB: key facts ........................................................................................................ 27
Table 15: H & M Hennes & Mauritz AB: key financials ($) ........................................................................................... 28
Table 16: H & M Hennes & Mauritz AB: key financials (SEK) ...................................................................................... 28
Table 17: H & M Hennes & Mauritz AB: key financial ratios ......................................................................................... 28
Table 18: Poland size of population (million), 2010–14 ................................................................................................ 30
Table 19: Poland gdp (constant 2005 prices, $ billion), 2010–14 ................................................................................. 30
Table 20: Poland gdp (current prices, $ billion), 2010–14 ............................................................................................ 30
Table 21: Poland inflation, 2010–14 ............................................................................................................................. 31
Table 22: Poland consumer price index (absolute), 2010–14 ...................................................................................... 31
Table 23: Poland exchange rate, 2010–14 .................................................................................................................. 31

LIST OF FIGURES
Figure 1: Poland apparel retail industry value: $ billion, 2010–14 .................................................................................. 8
Figure 2: Poland apparel retail industry category segmentation: % share, by value, 2014 ............................................ 9
Figure 3: Poland apparel retail industry geography segmentation: % share, by value, 2014 ....................................... 10
Figure 4: Poland apparel retail industry distribution: % share, by value, 2014 ............................................................. 11
Figure 5: Poland apparel retail industry value forecast: $ billion, 2014–19 .................................................................. 12
Figure 6: Forces driving competition in the apparel retail industry in Poland, 2014 ..................................................... 13
Figure 7: Drivers of buyer power in the apparel retail industry in Poland, 2014 ........................................................... 14
Figure 8: Drivers of supplier power in the apparel retail industry in Poland, 2014 ........................................................ 15
Figure 9: Factors influencing the likelihood of new entrants in the apparel retail industry in Poland, 2014 .................. 16
Figure 10: Factors influencing the threat of substitutes in the apparel retail industry in Poland, 2014 ......................... 17
Figure 11: Drivers of degree of rivalry in the apparel retail industry in Poland, 2014 ................................................... 18
Figure 12: Industria de Diseno Textil, S.A.: revenues & profitability ............................................................................. 21
Figure 13: Industria de Diseno Textil, S.A.: assets & liabilities ..................................................................................... 22
Figure 14: The TJX Companies, Inc.: revenues & profitability ..................................................................................... 25
Figure 15: The TJX Companies, Inc.: assets & liabilities ............................................................................................. 26
Figure 16: H & M Hennes & Mauritz AB: revenues & profitability ................................................................................. 29
Figure 17: H & M Hennes & Mauritz AB: assets & liabilities ......................................................................................... 29

MARKET OVERVIEW
Market definition
The apparel retail industry consists of the sale of all menswear, womenswear and childrenswear. The menswear market
includes mens activewear, casual wear, essentials, formalwear, formalwear-occasion and outerwear.
The womenswear market includes women's activewear, casual wear, essentials, formalwear, formalwear-occasion and
outerwear.
The childrenswear market includes baby clothing, boys activewear, boys casual wear, boys essentials, boys formalwear,
boys formalwear-occasion, boys outerwear, girls activewear, girls casual wear, girls essentials, girls formalwear-
occasion, girls outerwear and toddler clothing.
The industry value is calculated at retail selling price (RSP), and includes all taxes and levies.
All currency conversions used in this report have been calculated at constant 2014 annual average exchange rates.
For the purposes of this report, North America consists of Canada, Mexico, and the United States.
South America comprises Argentina, Brazil, Chile, Colombia, and Venezuela.
Europe comprises Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy,
Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland, Turkey, and the United Kingdom.
Scandinavia comprises Denmark, Finland, Norway, and Sweden.
Asia-Pacific comprises Australia, China, Hong Kong, India, Indonesia, Kazakhstan, Japan, Malaysia, New Zealand,
Pakistan, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam.
Middle East comprises Egypt, Israel, Saudi Arabia, and United Arab Emirates.
Market analysis
The Polish apparel retail industry experienced moderate growth over the period 2010-2014. This trend is projected to
continue over the forecast period through to 2019, with annual growth rates largely remaining around 5.4%.
The Polish apparel retail industry had total revenues of $8.2bn in 2014, representing a compound annual growth rate
(CAGR) of 4.5% between 2010 and 2014. In comparison, the Russian and Czech industries grew with CAGRs of 2.2%
and 2.7% respectively, over the same period, to reach respective values of $39.7bn and $2.5bn in 2014.
The womenswear segment was the industry's most lucrative in 2014, with total revenues of $4.1bn, equivalent to 49.5%
of the industry's overall value. The menswear segment contributed revenues of $3.0bn in 2014, equating to 35.9% of the
industry's aggregate value.
The performance of the industry is forecast to accelerate, with an anticipated CAGR of 4.8% for the five-year period 2014
- 2019, which is expected to drive the industry to a value of $10.4bn by the end of 2019. Comparatively, the Russian
industry will decline with a CARC of -0.7%, and the Czech industry will increase with a CAGR of 5%, over the same
period, to reach respective values of $38.3bn and $3.1bn in 2019.

MARKET DATA
Market value
The Polish apparel retail industry grew by 4.9% in 2014 to reach a value of $8.2 billion.
The compound annual growth rate of the industry in the period 2010–14 was 4.5%.
Table 1: Poland apparel retail industry value: $ billion, 2010–14
Year $ billion zl billion € billion % Growth

2010 6.9 21.8 5.2
2011 7.1 22.5 5.4 3.5%
2012 7.5 23.5 5.6 4.4%
2013 7.9 24.8 5.9 5.2%
2014 8.2 26.0 6.2 4.9%
CAGR: 2010–14 4.5%
SOURCE: MARKETLINE MARKETLINE
Figure 1: Poland apparel retail industry value: $ billion, 2010–14

MARKET SEGMENTATION
Category segmentation
Womenswear is the largest segment of the apparel retail industry in Poland, accounting for 49.5% of the industry's total
value.
The Menswear segment accounts for a further 35.9% of the industry.
Table 2: Poland apparel retail industry category segmentation: $ billion, 2014
Category 2014 %
Womenswear 4.1 49.5%
Menswear 3.0 35.9%
Childrenswear 1.2 14.6%
Total 8.3 100%
Figure 2: Poland apparel retail industry category segmentation: % share, by value, 2014

Geography segmentation
Poland accounts for 2% of the European apparel retail industry value.
The United Kingdom accounts for a further 15.3% of the European industry.
Table 3: Poland apparel retail industry geography segmentation: $ billion, 2014
Geography 2014 %
United Kingdom 63.0 15.3
Russia 39.7 9.6
Poland 8.2 2.0
Czech Republic 2.5 0.6
Rest of Europe 299.1 72.5
Total 412.5 100%
Figure 3: Poland apparel retail industry geography segmentation: % share, by value, 2014

Market distribution
Clothing, foot/sportswear & accessories retailers form the leading distribution channel in the Polish apparel retail
industry, accounting for a 73.6% share of the total industry's value.
Hypermarket, supermarket & discounters accounts for a further 16.3% of the industry.
Table 4: Poland apparel retail industry distribution: % share, by value, 2014
Channel % Share
Clothing, foot/sportswear & accessories retailers 73.6%
Hypermarket, supermarket & discounters 16.3%
Discount, variety & general merchandise retailers 4.4%
Department stores 3.2%
Other 2.6%
Total 100%
Figure 4: Poland apparel retail industry distribution: % share, by value, 2014

MARKET OUTLOOK
Market value forecast
In 2019, the Polish apparel retail industry is forecast to have a value of $10.4 billion, an increase of 26.8% since 2014.
The compound annual growth rate of the industry in the period 2014–19 is predicted to be 4.8%.
Table 5: Poland apparel retail industry value forecast: $ billion, 2014–19
Year $ billion zl billion € billion % Growth

2014 8.2 26.0 6.2 4.9%
2015 8.4 26.6 6.4 2.5%
2016 8.9 28.0 6.7 5.2%
2017 9.4 29.5 7.1 5.4%
2018 9.9 31.2 7.4 5.4%
2019 10.4 32.8 7.9 5.4%
CAGR: 2014–19 4.8%
Figure 5: Poland apparel retail industry value forecast: $ billion, 2014–19

FIVE FORCES ANALYSIS
The apparel retail market will be analyzed taking retailers as players. The key buyers will be taken as individual
consumers, and clothing manufacturers and wholesalers as the key suppliers.
Summary
Figure 6: Forces driving competition in the apparel retail industry in Poland, 2014
Moderate levels of overall growth in recent years have reduced rivalry to a moderate level in the Polish apparel retail
industry.
Clothing is an essential item, with consumer choice being influenced by factors such as fashion and a desire to signal
social success. Demand patterns are susceptible to branding and advertising, which, despite the lack of significant
switching costs, tends to weaken buyer power. There is a fast pace of change in the demands of individual buyers. This
means that, in an attempt to maintain market share in a highly competitive market, players aim to attract customers by
creating strong brand consciousness and running intensive marketing campaigns. Low barriers to entry and relatively low
requirements for capital mean there is a high likelihood of new entrants in this market. Substitutes to apparel retail
include bespoke tailoring, factory shops, homemade clothing, and second hand clothing, although these pose a minimal
threat to market players. Sales are boosted by the popularity of fast-fashion and disposable clothing. Predominantly, this
has been a visible factor of growth within the womenswear sector. However, as the fashion industry becomes more
focused on styles for men, fast-fashion trends for menswear are becoming just as prevalent as those for women.

Buyer power
Figure 7: Drivers of buyer power in the apparel retail industry in Poland, 2014
Buyer power in the apparel retail industry is weakened by the small size of buyers: virtually all buyers are individual
consumers. What’s more, retailers tend to have large numbers of individual customers, which further weakens buyer
power as the loss of one is unlikely to have a significant impact on revenues.
Despite the fact that brand consciousness in this market is substantial, the loyalty of consumers to specific brands is not
always the overriding factor in their decision making. Buyer power is enhanced by a high level of choice, which is
generated by the absence of switching costs. Brand loyalty within the top end of the apparel retail industry is connected
more with the particular designer than the retailer, although some labels also have their own retail operations. The depth
of price sensitivity varies regionally, although clothes are perceived as closely linked to lifestyle and social status, which
grants retailers the opportunity to influence consumer behavior. There is a large market for non-designer apparel retail,
especially among customers with lower disposable incomes.
Retailers can differentiate themselves fairly strongly through the styles of clothing offered and the price range of this
clothing, meaning buyer power is weakened. Apparel is an essential item for consumers, and they are significantly
exposed to the penetration of marking icons and images into most forms of media. However, retailers must remain aware
of the developments that shape public perception and subsequent demand.
Despite consumers lacking financial muscle, the position of retailers at the end of the value chain makes it impossible to
integrate forwards. This means that they are obliged to offer buyers what they demand, in a market often subject to
unpredictable and rapid changes in fashion. These factors strengthen buyer power. Overall, buyer power is assessed as
moderate.

Supplier power
Figure 8: Drivers of supplier power in the apparel retail industry in Poland, 2014
The key suppliers in this industry are clothing manufacturers and wholesalers. These are typically small to medium sized
enterprises, giving retailers the possibility to source from both. In Poland, the wholesale and clothing manufacturing
sectors are fairly fragmented. Supplier fragmentation is made greater by the ability of retailers to source from foreign
manufacturers. With the liberalization of international trade, supplier power in the Polish industry is decreased through
competition from manufacturers in low-wage regions, most notably China and India. Although retailers’ switching costs
are not very high, switching includes the risk of choosing a supplier with a more extended supply chain or who may not
be able to cope with sudden changes in demand on the market. The lack of diversity between suppliers weakens their
power, as the apparel retail industry is highly important to their business. Apparel manufacturing is almost always labor
intensive, due to the difficulty of automating processes such as the sewing of garments. The existence of a minimum
wage in many countries slightly increases the power of suppliers of labor. The Bangladesh Rana Plaza disaster in 2013,
in which more than 1,100 people died and many were left injured; has put increasing ethical pressure on retailers to
source responsibly. So far $21.5m has been paid into the Rana Plaza Donors Trust Fund through contributions from
buyers, the Bangladesh Prime Ministers Fund and other private donors. A number of brands have refused to provide
adequate payment into the fund. Walmart, Mango and The Children's Place have been criticized for making donations
which fall short of expectations. Benetton initially was reluctant to pay into the fund; however in April 2015 the company
made a $1.1m contribution. Overall, supplier power in this industry is assessed as moderate.

New entrants
Figure 9: Factors influencing the likelihood of new entrants in the apparel retail industry in Poland,
2014
The Polish apparel retail industry has experienced moderate growth in recent years, potentially making it attractive to
new entrants.
Barriers to entry are not high, with capital requirements being low enough for individuals to enter. However, a small
number of large corporations, such as TJX Companies and H&M, account for a significant share of total market
revenues. They benefit from scale economies that allow them to build brands in multiple retail outlets, and greater buying
power when negotiating with suppliers. The latter allows them to compete more intensely on price.
There is little regulation as such for retailers in the market, but there are some self-imposed conventions related to child
labor, working conditions and workers' wages. New entrants who are known to have items manufactured outside of such
conventions may lose customers and suffer long-term reputational damage.
Low switching costs for buyers and a low level of product differentiation make it easier for new entrants to compete with
existing players.
Overall, there is a strong threat of new entrants to this market.

Threat of substitutes
Figure 10: Factors influencing the threat of substitutes in the apparel retail industry in Poland,
2014
While there are no substitutes for apparel as such, there are alternatives to retail. One option is purchasing clothing
directly from the manufacturer as opposed to the conventional distribution chain. This is facilitated by the growth of online
sales. All major apparel retailers now have their own online stores as there is an increased consumer acceptance of the
internet as an alternative shopping channel.
A growing number of ‘pureplay’ online fashion stores have emerged in the market, as they look to take advantage of
lower running costs from not having to pay for the overheads incurred by running a high street store. The online sale
avenue opens the door for manufacturers who may be tempted by the opportunity of selling directly to end users without
the need for the retailer.
Home-made and custom-made (couture) clothing are also niche alternatives to the retail of ready-made clothes.
Counterfeit clothing can be a significant threat to the revenues of manufacturers. Another option is purchasing second-
hand clothing from charity shops and internet sites such as eBay.
The threat of substitutes to the apparel retail industry is assessed as weak overall.

Degree of rivalry
Figure 11: Drivers of degree of rivalry in the apparel retail industry in Poland, 2014
Major increases in capacity may be fairly costly to smaller players if they require the outlay of opening additional outlets,
although this may be lessened if it can be accomplished by taking on more staff on a flexible basis.

LEADING COMPANIES
Industria de Diseno Textil, S.A.
Table 6: Industria de Diseno Textil, S.A.: key facts
Head office: Edificio Inditex, Avenida de la Diputacion, 15452 Arteixo, A Coruna, ESP
Telephone: 34 981 18 54 00
Fax: 34 981 18 55 44
Local office: Ul. Mysia 5, 00 496 Warsaw, POL
Telephone: 48 22 5965150
Fax: 48 22 5965151
Website: www.inditex.com
Financial year-end: January
Ticker: ITX
Stock exchange: Madrid
SOURCE: COMPANY WEBSITE MARKETLINE
Inditex is one of the largest fashion retailers in the world. It comprises more than 100 companies operating in textile
design, manufacturing and distribution. The group markets its range of products through eight sales formats: Zara,
Bershka, Pull & Bear, Massimo Dutti, Stradivarius, Oysho, Zara Home and Uterque. At the end of FY2015, Inditex
operated 6,460 stores in 88 markets across Europe, the Americas and Asia.
The group operates through three divisions: Zara, Bershka and other.
Zara offers a wide range of fashion products for women, men and children. At the end of FY2015, Inditex operated
around 2000 stores under the Zara brand (including the Zara Kids stores) in 88 markets. These stores are located in
major cities throughout the world.
Bershka offers fashion for young women and men (target market aged 13-23). At the end of FY2015, Inditex operated
910 Bershka stores in 64 markets.
The other division comprises the following sales formats: Pull & Bear, Massimo Dutti, Stradivarius, Oysho, Zara Home
and Uterque.
Pull & Bear offers casual fashion and sport styles for young men and women typically aged between 14 and 28. The
group operated 900 Pull & Bear stores in the main streets and shopping centers of 65 markets at the end of FY2015, as
well as five e-commerce platforms.
Massimo Dutti offers international fashion collections for men, women and children. Inditex operated around 700
Massimo Dutti stores in 68 markets at the end of FY2015.
Stradivarius offers urban fashion for young women typically aged 18 to 35. At the end of FY2015, the group operated
910 Stradivarius stores in 59 markets.
Oysho offers women's loungewear, lingerie and undergarments. At the end of FY2015, Inditex operated 570 Oysho
stores in 40 markets.
Zara Home specializes in home furnishings. It offers textiles for bed, table and bathroom linens, as well as decorative
items. The group operated 437 Zara Home stores in 48 markets at the end of FY2015.

Uterque offers premium accessories, including bags, shoes and costume jewelry. Inditex operated 66 Uterque stores in
12 markets at the end of FY2015.
Key Metrics
The company recorded revenues of $24,043 million in the fiscal year ending January 2015, an increase of 8.3%
compared to fiscal 2014. Its net income was $3,319 million in fiscal 2015, compared to a net income of $3,155 million in
the preceding year.
Table 7: Industria de Diseno Textil, S.A.: key financials ($)
$ million 2011 2012 2013 2014 2015

Revenues 16,624.6 18,305.2 21,162.7 22,195.6 24,043.1
Net income (loss) 2,298.3 2,564.0 3,133.1 3,154.7 3,318.5
Total assets 13,040.6 14,544.1 17,107.2 18,256.5 20,407.4
Total liabilities 4,516.1 4,650.3 5,850.7 5,942.8 6,514.0
Employees 92,301 100,138 109,512 120,314 128,313
SOURCE: COMPANY FILINGS MARKETLINE
Table 8: Industria de Diseno Textil, S.A.: key financials (€)
€ million 2011 2012 2013 2014 2015

Revenues 12,526.6 13,793.0 15,946.1 16,724.4 18,116.5
Net income (loss) 1,731.8 1,93 .0 2,360.8 2,377.1 2,500.5
Total assets 9,826.1 10,959.0 12,890.3 13,756.3 15,377.0

Table 9: Industria de Diseno Textil, S.A.: key financial ratios
Ratio 2011 2012 2013 2014 2015

Profit margin 13.8% 14.0% 14.8% 14.2% 13.8%
Revenue growth 13.0% 10.1% 15.6% 4.9% 8.3%
Asset growth 17.9% 11.5% 17.6% 6.7% 11.8%
Liabilities growth 14.8% 3.0% 25.8% 1.6% 9.6%
Debt/asset ratio 34.6% 32.0% 34.2% 32.6% 31.9%
Return on assets 19.1% 18.6% 19.8% 17.8% 17.2%
Revenue per employee $180,112 $182,800 $193,246 $184,481 $187,379
Profit per employee $24,901 $25,605 $28,610 $26,221 $25,863
Figure 12: Industria de Diseno Textil, S.A.: revenues & profitability

Figure 13: Industria de Diseno Textil, S.A.: assets & liabilities

SMYK Sp. z o.o.
Table 10: SMYK Sp. z o.o.: key facts
Head office: Ul. Marszalkowska, 104/122 Warszawa, POL

Telephone: 48 22 461 00 00
Fax: 48 022 461 00 01
Website: www.smyk.com
SMYK Sp. z o.o. is a subsidiary of NFI Empik Media & Fashion S.A. and operates as a retail chain offering a wide range
of toys, school accessories, books, multimedia, and baby accessories, as well as clothing and footwear for children from
0 to 14 years of age. As well as worldwide-known brands, such as Fisher Price, Tiny Love, Barbie, Lego and Baby Born,
SMYK offers its own exclusive brands: COOL CLUB clothes and SMIKI toys.
COOL CLUB is designed for children of two age groups. The design team creates six season collections for each age
group. Mini collections are available in sizes designed for 0-6 and 7-14 year-old kids. COOL CLUB footwear for children
aged 0 -14 years is available. It also offers a broad range of COOL CLUB accessories such as belts, ties and bags.
Footwear available in SMYK stores matches its seasonal clothing lines. A significant part of footwear sold in SMYK
stores has "healthy feet" certificates, which confirms their quality and adaptability to children's feet as they grow. The
COOL CLUB footwear range is also complimented with licensed characters, e.g. BARBIE, DISNEY and HOT WHEELS
etc.
SMYK stores offer a wide range of toys, including plush dolls, cars, games, building bricks, educational toys and baby
toys. Approximately 30% of SMYK's toy offers are exclusive to SMYK stores.
The SMIKI brand, available exclusively in SMYK stores, includes toys stimulating logical thinking and which introduce
children to sounds and colors.
The company’s range of school supplies, books and multimedia is a supplement to its toy line.
The educational offering is accompanied by a range of multimedia products. Apart from typical multimedia products (PC
games, learning programs, dictionaries, etc.) the company also offers electronic games and educational laptops.
SMYK also offers baby equipment: accessories, clothing, footwear, toys, baby carriages, cribs and car seats; as well as
accessories for breast-feeding mothers and pregnant women.
The concept of the SMYK chain is based on the first and the largest store opened in 1952. This department store in
Warsaw was a venue that belonged to the state-owned company Domy Towarowe "Centrum" ("Central Department
Stores"). The expansion of the SMYK chain started in 2000, when the SMYK department store was separated from DTC.
An independent company was established and named SMYK Sp. z o.o.
In the period between 2000 and 2006, the company began to build its chain of children's stores in Poland, with 35 stores
opened in the largest Polish cities. In 2004, SMYK was acquired by NFI HETMAN (NFI Empik Media & Fashion Group).
In 2006, the first SMYK stores outside Poland were opened in the "Das Schloss" shopping mall in Berlin and in Kiev's
"Ukraine" shopping mall.
Key Metrics
As a subsidiary of NFI Empik Media & Fashion S.A., SMYK is not obliged to release its financial information.

The TJX Companies, Inc.
Table 11: The TJX Companies, Inc.: key facts
Head office: 770 Cochituate Road, Framingham, Massachusetts 01701, USA

Telephone: 1 508 390 1000
Website: www.tjx.com
Financial year-end: January
Ticker: TJX
Stock exchange: New York
TJX operates retail stores offering apparel (including menswear, womenswear and childrenswear) and home fashion
related merchandise in the US, Canada, the UK, Ireland, Germany and Poland. The company offers branded and
designer family apparel and home fashions at substantially lower prices (20% to 60%) compared with department and
specialty stores' regular prices. TJX operates more than 3,200 stores globally.
The company operates through four business segments: Marmaxx, HomeGoods, TJX Europe, and TJX Canada. The
Marmaxx and HomeGoods segments operate in the US.
The Marmaxx segment comprises T.J. Maxx and Marshalls stores. Both stores offer family apparel (including footwear
and accessories), home fashions (including home basics, accent furniture, lamps, rugs, wall decor, decorative
accessories and giftware) and other merchandise. T.J. Maxx also offers fine jewelry and accessories and has a designer
section called The Runway. Marshalls stores, on the other hand, include a full line of footwear and broader men's
offerings and a juniors' department called The Cube. At the end of FY2014, the company operated 1,079 T.J. Maxx
stores and 942 Marshalls stores in the US. The segment also offers products through tjmaxx.com.
HomeGoods is the company's off-price retail chain offering a wide range of home furnishings in the US. It offers home
basics, giftware, accent furniture, lamps, rugs, wall decor, decorative accessories, seasonal and other merchandise. At
the end of FY2014, the company operated 450 HomeGoods stores.
TJX Canada comprises stores under the Winners, Marshalls and HomeSense banners. Winners is an off-price apparel
and home fashions retailer in Canada. Merchandise offered at its stores is similar to that offered at T.J. Maxx's stores.
Marshalls stores in Canada offer merchandise similar to Marshalls stores in the US, including an expanded footwear
department and The Cube juniors' department. HomeSense is a home furnishing off-price retailer in Canada. At the end
of FY2014, TJX operated 227 Winners stores, 27 Marshalls stores, and 91 HomeSense stores in Canada.
The TJX Europe segment comprises T.K. Maxx and HomeSense retail chains in Europe. T.K. Maxx is the only major off-
price retailer of apparel and home furnishing in Europe. It operates in the UK, Ireland, Germany and Poland. Through its
stores and online website, T.K. Maxx offers a merchandise mix similar to T.J. Maxx, Marshalls and Winners. HomeSense
is a home fashions off-price retailer in the UK. It offers a merchandise mix of home fashions similar to that of
HomeGoods in the US and HomeSense in Canada. At the end of FY2014, the company operated 371 T.K. Maxx stores
and 28 HomeSense stores in Europe.
TJX operates distribution centers covering nearly 12 million square feet in five countries. During FY2014, the company
shipped two billion units to its stores.
Key Metrics
The company recorded revenues of $29,078 million in the fiscal year ending January 2015, an increase of 6.0%
the preceding year.

Table 12: The TJX Companies, Inc.: key financials ($)
$ million 2011 2012 2013 2014 2015

Revenues 21,942.2 23,191.5 25,878.4 27,422.7 29,078.4
Net income (loss) 1,343.1 1,496.1 1,906.7 2,137.4 2,215.1
Total assets 7,971.8 8,281.6 9,511.9 10,201.0 11,067.6
Table 13: The TJX Companies, Inc.: key financial ratios
Ratio 2011 2012 2013 2014 2015

Profit margin 6.1% 6.5% 7.4% 7.8% 7.6%
Revenue growth 8.2% 5.7% 11.6% 6.0% 6.0%
Asset growth 6.8% 3.9% 14.9% 7.2% 8.5%
Debt/asset ratio 61.1% 61.2% 61.5% 58.5% 61.5%
Return on assets 17.4% 18.4% 21.4% 21.7% 20.8%
Figure 14: The TJX Companies, Inc.: revenues & profitability

Figure 15: The TJX Companies, Inc.: assets & liabilities

H & M Hennes & Mauritz AB
Table 14: H & M Hennes & Mauritz AB: key facts
Head office: Master Samuelsgatan 46A, 106 38 Stockholm, SWE

Telephone: 46 8 796 55 00
Fax: 46 8 796 57 03
Local office: Sp. z o.o., ul. Marszalkowska 104/122, 00-017 Warszawa, POL
Telephone: 48 22 551 73 10
Website: www.hm.com
Financial year-end: November
Ticker: H&M B
Stock exchange: Stockholm
H & M Hennes & Mauritz AB (H&M) is a Sweden-based leading retailer of fashion apparel, cosmetics, accessories and
shoes for women, men, teenagers and children. H&M's retail operations are conducted through leased store premises,
internet and catalogue sales and through a network of franchise stores. At the end of FY2014, the group had 3,511
stores which included 110 franchise stores.
Internet and catalogue sales are offered in Sweden, Norway, Denmark, Finland, the Netherlands, Germany, Austria and
the UK. Furthermore, H&M's home textile range, H&M Home, is offered for sale through internet and catalogues, and
through stores in Stockholm, Helsinki, Copenhagen, London and Amsterdam among others.
H&M's in-house designers work with pattern designers and buyers to create a range of merchandise. The group's design
and buying department creates the collections centrally and outsources the manufacturing. After the merchandise is
ready, it is purchased and distributed to a region and then allocated to separate sales countries in that region depending
upon the demand in each market. In order to support this operating style, H&M restructured its business process in 2007
and transferred the central design, buying, logistics and stock-keeping functions to a separate company, H & M Hennes
& Mauritz GBC AB.
The group outsources product manufacturing to 800 independent suppliers through its local production offices in Asia
and Europe. Tests, such as chemical and laundry tests, are carried out on a continuous basis at the production offices
and at external laboratories. The merchandise is subsequently transported by sea, rail, road or air to various distribution
centers. The goods are then distributed directly to the stores or to central regional replenishment centers.
Key Metrics
The company recorded revenues of $22,072 million in the fiscal year ending November 2014, an increase of 17.8%
the preceding year.

Table 15: H & M Hennes & Mauritz AB: key financials ($)
$ million 2010 2011 2012 2013 2014

Revenues 15,813.4 16,034.4 17,608.7 18,740.3 22,072.1
Net income (loss) 2,723.1 2,306.2 2,458.7 2,500.2 2,911.9
Total assets 8,626.9 8,773.5 8,771.3 9,573.5 11,019.6
Employees 87,000 64,874 72,276 116,000 132,000
Table 16: H & M Hennes & Mauritz AB: key financials (SEK)
SEK million 2010 2011 2012 2013 2014

Revenues 108,483.0 109,999.0 120,799.0 128,562.0 151,419.0
Net income (loss) 18,681.0 15,821.0 16,867.0 17,152.0 19,976.0
Total assets 59,182.0 60,188.0 60,173.0 65,676.0 75,597.0
Table 17: H & M Hennes & Mauritz AB: key financial ratios
Ratio 2010 2011 2012 2013 2014

Profit margin 17.2% 14.4% 14.0% 13.3% 13.2%
Revenue growth 7.0% 1.4% 9.8% 6.4% 17.8%
Asset growth 8.9% 1.7% 0.0% 9.1% 15.1%
Debt/asset ratio 25.4% 26.7% 27.2% 31.1% 31.8%
Return on assets 32.9% 26.5% 28.0% 27.3% 28.3%
Revenue per employee $181,763 $247,162 $243,631 $161,554 $167,213
Profit per employee $31,300 $35,549 $34,018 $21,554 $22,060

Figure 16: H & M Hennes & Mauritz AB: revenues & profitability
Figure 17: H & M Hennes & Mauritz AB: assets & liabilities

MACROECONOMIC INDICATORS
Country Data
Table 18: Poland size of population (million), 2010–14
Year Population (million) % Growth

2010 38.1 0.0%
2011 38.1 (0.1%)
2012 38.1 (0.1%)
2013 38.1 (0.1%)
2014 38.0 (0.1%)
Table 19: Poland gdp (constant 2005 prices, $ billion), 2010–14
Year Constant 2005 Prices, $ billion % Growth

2010 382.7 3.9%
2011 399.9 4.5%
2012 407.7 1.9%
2013 414.1 1.6%
2014 427.8 3.3%
Table 20: Poland gdp (current prices, $ billion), 2010–14
Year Current Prices, $ billion % Growth

2010 469.6 8.9%
2011 515.5 9.8%
2012 490.7 (4.8%)
2013 517.7 5.5%
2014 552.2 6.7%

Table 21: Poland inflation, 2010–14
Year Inflation Rate (%)

2010 2.6%
2011 3.9%
2012 3.7%
2013 0.9%
2014 0.2%
Table 22: Poland consumer price index (absolute), 2010–14
Year Consumer Price Index (2005 = 100)

2010 114.8
2011 119.3
2012 123.7
2013 124.9
2014 125.2
Table 23: Poland exchange rate, 2010–14
Year Exchange rate ($/zl) Exchange rate (€/zl)

2010 3.0221 4.0029
2011 2.9585 4.1159
2012 3.2555 4.1766
2013 3.1603 4.1950
2014 3.1543 4.1819

METHODOLOGY
MarketLine Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-
checked and presented in a consistent and accessible style.
Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by
analysis from industry experts using highly complex modeling & forecasting tools, MarketLine’s in-house databases
provide the foundation for all related industry profiles
Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company
profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market
overview
Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of each
definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the
market and our clients
Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and
trends
MarketLine aggregates and analyzes a number of secondary information sources, including:
- National/Governmental statistics
- International data (official international sources)
- National and International trade associations
- Broker and analyst reports
- Company Annual Reports
- Business information libraries and databases
Modeling & forecasting tools – MarketLine has developed powerful tools that allow quantitative and qualitative data to
be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can
then be refined according to specific competitive, regulatory and demand-related factors
Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date

Industry associations
International Textile and Apparel Association
PO Box 1360, Monument, CO 80132-1360, USA
Fax: 1 719 488 3716
www.itaaonline.org
Polish Federation of Apparel and Textiles
ul. Kielecka 7, Poland - 81-303 Gdynia, POL
Tel.: 48 58 620 9501
Fax: 48 58 621 6923
www.textiles.pl
Related MarketLine research

Industry Profile
Apparel Retail in France
Apparel Retail in China
Apparel Retail in Japan

APPENDIX
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MarketLine Industry Profile

Reference Code: 0151-2005

Publication Date: May 2015

Poland - Apparel Retail 0151 - 2005 - 2014

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 1

Market value forecast

Poland - Apparel Retail 0151 - 2005 - 2014

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 2

Market value forecast ................................................................................................................................................. 2

Category segmentation .............................................................................................................................................. 2

Geography segmentation ........................................................................................................................................... 2

Market Overview ............................................................................................................................................................ 7

Market definition ......................................................................................................................................................... 7

Market analysis .......................................................................................................................................................... 7

Market Data ................................................................................................................................................................... 8

Market Segmentation ..................................................................................................................................................... 9

Category segmentation .............................................................................................................................................. 9

Geography segmentation ......................................................................................................................................... 10

Market distribution .................................................................................................................................................... 11

Market Outlook ............................................................................................................................................................. 12

Market value forecast ............................................................................................................................................... 12

Five Forces Analysis .................................................................................................................................................... 13

Buyer power ............................................................................................................................................................. 14

Supplier power ......................................................................................................................................................... 15

New entrants ............................................................................................................................................................ 16

Degree of rivalry ....................................................................................................................................................... 18

Leading Companies ..................................................................................................................................................... 19

Industria de Diseno Textil, S.A. ................................................................................................................................ 19

SMYK Sp. z o.o. ....................................................................................................................................................... 23

The TJX Companies, Inc. ......................................................................................................................................... 24

H & M Hennes & Mauritz AB .................................................................................................................................... 27

Macroeconomic Indicators ........................................................................................................................................... 30

Country Data ............................................................................................................................................................ 30

Poland - Apparel Retail 0151 - 2005 - 2014

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 3

Related MarketLine research ................................................................................................................................... 33

About MarketLine ..................................................................................................................................................... 34

Poland - Apparel Retail 0151 - 2005 - 2014

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 4

Table 5: Poland apparel retail industry value forecast: $ billion, 2014–19.................................................................... 12

Table 6: Industria de Diseno Textil, S.A.: key facts ...................................................................................................... 19

Table 7: Industria de Diseno Textil, S.A.: key financials ($) ......................................................................................... 20

Table 8: Industria de Diseno Textil, S.A.: key financials (€) ......................................................................................... 20

Table 9: Industria de Diseno Textil, S.A.: key financial ratios ....................................................................................... 21

Table 10: SMYK Sp. z o.o.: key facts ........................................................................................................................... 23

Table 11: The TJX Companies, Inc.: key facts ............................................................................................................. 24

Table 18: Poland size of population (million), 2010–14 ................................................................................................ 30

Table 20: Poland gdp (current prices, $ billion), 2010–14 ............................................................................................ 30

Table 21: Poland inflation, 2010–14 ............................................................................................................................. 31

Table 22: Poland consumer price index (absolute), 2010–14 ...................................................................................... 31

Table 23: Poland exchange rate, 2010–14 .................................................................................................................. 31

Poland - Apparel Retail 0151 - 2005 - 2014

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 5

Poland - Apparel Retail 0151 - 2005 - 2014

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 6

South America comprises Argentina, Brazil, Chile, Colombia, and Venezuela.

Scandinavia comprises Denmark, Finland, Norway, and Sweden.

Poland - Apparel Retail 0151 - 2005 - 2014

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 7

Table 1: Poland apparel retail industry value: $ billion, 2010–14

Year $ billion zl billion € billion % Growth

CAGR: 2010–14 4.5%

SOURCE: MARKETLINE MARKETLINE