Martes Sport, one of the leading sports distributors in Poland, is rapidly building up a large-scale retail operation. In the last two years it has already opened thirteen stores, all of them owned by the company, and intends to open more in the next two years to build up a network of 30 stores around the country.
Launched twelve years ago in Bielsko by Michal Kowalik and Jaroslaw Drozdzik, who still equally own the company, Martes Sport is the Polish distributor of Hi-Tec, Colmar and Arena, with Iguana added last year. Martes Sport also runs a Polish subsidiary for Brugi, an Italian brand in which it owns half of the shares.
Martes Sport could be regarded as Poland’s market leader in outdoor footwear through the distribution of Hi-Tec, which is sold in large volumes through specialist retailers as well as supermarkets. Furthermore, it has a global license to make Hi-Tec apparel and equipment, from tents to backpacks, sleeping bags and more, which are sold in Poland and a few other countries. Martes Sport was distinguished as best global distributor for Hi-Tec last year as well as this year.
While the mix of wholesale and retail operations is widespread in emerging markets, Martes Sports has distinguished itself by quickly building up a substantial chain. Retailing should make up about 40 percent of its sales this year. Its turnover increased by nearly 30 percent to around 100 million zlotys (€m25.4m-$35.0m) in 2009, and it continued to expand briskly so far this year.
Martes Sport has been opening its stores mostly in secondary Polish towns, on surfaces ranging from about 500 square meters to 2,200 square meters, the largest one being located in Czeladz. About half of the sales in these Martes Sport stores are generated by the company’s own brands, including the Martes brand for products at entry-level prices in all categories. However, it also sells many other brands, from Adidas and Nike to The North Face.
The launch of these retail operations comes as several leading Polish outdoor retail franchises and chains are coming under heavy pressure. The currency situation and slower economic growth depressed the market last year, and it was hit again this year by mourning after the airplane crash that killed the country’s president, as well as disastrous floods and unfavorable weather.
Meanwhile, several leading brands and distributors in the Polish outdoor market, from Campus to Hi Mountain and Hannah, have started rolling out a special form of partnership with retailers, described as an “ajencije” or semi-franchise. Under this format, retailers take products from a partner supplier on a consignment basis and then fit their store with a separate cash till and card terminal for the supplier, enabling it to tightly control sales and replenishment (more in The Outdoor Industry Compass).
