Ruch kiosks are gradually disappearing from Polish streets for several years, but in recent months this process has accelerated significantly. Let us remind you that in 2019 Ruch had 1,333 sales outlets, and now there are fewer than 130. “Remedial actions are being implemented at Ruch from the Orlen Group to improve its financial results,” says the concern from Płock in response to questions Polish Press Agency. Orlen adds that within the retail segment kiosks are being closed down, of which there are currently 128. The company informs that “some of their agents decide to run their own businesses.” According to Orlen, 40 franchise holders have currently made such a decision.
Orlen: Decision dictated by “negative financial results of the segment”
Orlen emphasized that “the decision to liquidate the Ruch kiosk network is dictated by the segment's persistent negative financial results.” Orlen's press office added that the previous management board of the concern, when taking over Ruch, outlined its restructuring plan, which was to restore the company's profitability in 2021 and allow it to gain financial independence, but these goals were not achieved. It was indicated that in previous years this segment was permanently unprofitable and had a leading share in the losses generated by Ruch. In the years 2021-2023 it was over PLN 110 million and as a result, at the end of last year Ruch's debt exceeded PLN 160 million. The company from Płock currently prefers to focus on self-service “Orlen w Ruchu” points.
The decline of the Movement began many years ago
Orlen emphasizes that currently “prospective areas are being supported and permanently unprofitable areas are being phased out to eliminate growing financial liabilities.” The popularity of Ruch kiosks began to decline in 2000. In 2011, Ruch became a private company and was withdrawn from the Warsaw Stock Exchange, where it was listed in 2006. In 2020, Orlen purchased 65 percent. Ruch's actions to save the brand, but it was of little use. Ruch's share in the printed press distribution market decreased year to year from 21.6%. up to 13.7 percent – according to data from the Chamber of Press Publishers in February 2023. Let us remind you that the history of Ruch kiosks dates back to just after World War I. The first kiosk was opened in January 1919 on the platform of the Vienna Railway station in Warsaw.