Zabka Group (ZAB) Investor Day 2025 summary

Strategic vision and growth outlook

• Upgraded growth forecast: targeting 1,300+ new store openings annually in Poland and Romania through 2028, aiming for 16,000 stores by 2028 and a long-term potential of 27,000 stores, up from previous estimates.

• Like-for-Like sales expected to grow mid to high single digits, driven by street food, expanded services, product innovation, and digital engagement.

• International expansion in Romania progressing rapidly, with over 120 stores opened in a year, strong customer traction, and revised white space potential of 7,600 stores.

• Store network growth underpinned by advanced AI-driven site selection, robust store economics, and low closure rates.

• Continued replacement of traditional trade and sourcing of prime locations, with a superior franchise offer and increasing franchisee margins.

Digital transformation and innovation

• Digital businesses targeted to grow 5x by 2028, with break-even achieved and new services like Żappka Pay, EasyDrop, In-Pulse, ŻabkaAds, and izidrop launched.

• Żappka app at the center of digital strategy, now with 10.9 million users and driving 27% YoY growth in app-driven sales.

• Over 10 million app users and 30%+ of sales through the app; 5,000 digital screens deployed for retail media monetization.

• Technology and data science, including GenAI, deliver efficiency gains and underpin commercial decisions.

• Digital engagement is a major consumer trend, with 68% of the Polish population using retailer apps and 85% using grocer loyalty schemes.

Product and service innovation

• Street food platform launched, driving QMS (foodservice) growth, now approaching 20% of transactions, with a long-term goal to reach 30%+.

• Over 614 new exclusive products introduced in 2024, with a focus on ready-to-eat and innovative own brands.

• Over 20 in-store services and a robust new product development pipeline, introducing 30-40 new QMS products monthly and 1,500 branded products annually.

• Enhanced customer value proposition through digital enablement, personalized promotions, and a strategic roadmap for new services.

• App users generate baskets approximately 20% higher than non-users, highlighting the impact of digital engagement on sales.