A clash between big retailers associated in the Polish Trade and Distribution Organization POHiD and the companies issuing shopping discount cards, including Sodexho Pass Polska, is about to end. The Parliament has recently agreed to amend the law and liberalize the market. If Lech Kaczynski, Poland’s president, signs the law, big retailers will also start issuing their discount cards. If he rejects it, companies issuing these cards but without their own shops will rule the market.
“When we proposed the amendment, we wanted the unconstitutional provision to be removed, implementing a row of negative economic effects. When you limit the possibility to compete with price of the shopping discount cards, you act against the economic freedom and EU laws. It makes no good either to consumer or entrepreneur”, Andzej Falinski, POHiD general director said.
The amendment is supported by the Office for Competition and Consumer Protection (UOKiK) as well as PKPP Lewiatan employers’ association. Lobby representing big retailers want to change the market which today is ruled by Sodexho Pass Polska controlling over two thirds of it. Andrzej Falinski believes that if other companies, including retailers, start to implement their shopping cards, employers will gain because they will have bigger choice which cards to buy for their employees.
Sodexho representatives disagree.
“Sodexho Pass Polska was mentioned in the bill in very unfavorable context. We were called monopolist although there are no credible data”, Robert Lech, Sodexho Pass Polska general director said.
In his opinion, it is better when non-retailers issue discount shopping cards because they don’t promote their own brand and therefore send clients to many different shops. If big retailers start issuing their cards, they will offer discounts in one place only. Smaller retailers may be adversely affected here.
Since 2002, you cannot offer discount shopping cards in Poland at a lower or higher price than their true value. Therefore it is impossible to fight for clients with low price. That’s why big retailers completely withdrew from the market which today is led by independent issuing companies. They compete not with price but with the number of shops accepting their cards