EU – Baltic States, Good for Business, Lithuania, Markets and Companies, Retail

"I think it's realistic to attract one of the Polish retail trade companies. I don't see why our region should be taboo for Polish retailers, but some effort is required to convince them that the Lithuanian market can be attractive to them," SEB Lithuania's chief analyst Tadas Povilauskas told BNS.

"When the state wants to increase competition, this is a good sign for any investor. This may encourage Polish companies to enter the Lithuanian market," he added.

Laurynas Vilimas, head of the Association of Lithuanian Trade Companies, thinks that the arrival of a new retail chain would benefit Lithuania, but would pose new challenges for existing market players.

"This is advantageous for customers, but it would make it more difficult for market participants to work and compete. Growing competition will force them to look for new ways of attracting and keeping buyers," he told BNS.

Swedbank Lithuania's chief economist Nerijus Maciulis is skeptical about the possibility of a Polish retail chain gaining a foothold in Lithuania.

"I'm somewhat more skeptical about the possibility of a new retail player emerging in Lithuania and trying to find some niches here. A more likely scenario would be for a Polish chain to try and purchase an existing retail chain in Lithuania and then reinforce it," he told BNS.

Povilauskas said that it would be unrealistic to expect a Polish retailer to enter the market soon.

"That would take at least a couple of years, but (the arrival of a new player) is possible," he said.

Prime Minister Saulius Skvernelis said during his visit to Warsaw this week that he saw possibilities to attract a Polish retail chain to Lithuania.