Bridgepoint has acquired Smyk, Poland's leading retailer of children's products, from Empik Media & Fashion for €247 million, aiming to capitalize on the growing children's market.

Information on the Target

Smyk is the leading retailer of children's apparel, toys, and accessories in Poland. Established in 1952, the company began as a toy and apparel retailer in Warsaw and has since expanded its operations to include 125 stores across Poland and a growing presence in Romania, Russia, Ukraine, and Germany. Smyk offers four distinct store formats: megastores located in retail parks, city stores, smaller shops in mid-sized cities and local malls, and outlet formats. Recently, Smyk has also launched an apparel-only 'shop-in-shop' format for its international markets, indicating a strategic shift towards e-commerce, as evidenced by the fact that 12% of its sales are currently made online. The company's revenue is projected to reach PLN 1.4 billion in 2015.

Industry Overview in Poland

The children's products market in Poland is experiencing significant growth, with forecasts suggesting an increase of approximately 5% per annum. Notably, Smyk's specialized niche within this sector is expected to grow even more robustly at a rate of 11% per annum. This trajectory is largely driven by a rise in spending per child as Polish families become wealthier, indicating a positive correlation between increases in disposable income and expenditures on children's toys and apparel.

The Polish retail market is evolving, with a noticeable shift towards multichannel shopping experiences. Consumers are increasingly engaging in online shopping, making it crucial for retailers like Smyk to