Apparel and Footwear Specialist Retailers in Latvia

PROSPECTS

Growth experiences a slight decline as the landscape is highly sensitive to economic change, as well as the rise of e-commerce

Apparel and footwear specialist retailing was one of the most dynamic non-grocery channels over the review period, however, in 2019 the area has experienced a slight decline in growth. The competitive landscape suffers from being fragmented, as well as highly sensitive to slowing economic growth.

Threats include a preference many have for second-hand stores, as well as e-commerce sales

In 2019, there was an exceptionally strong demand for affordable clothing, and growth in used clothing sales continued. Over half of the population in 2019, stated they preference branded stores, but a quarter of consumers stated they preference second-hand sales – a huge threat to fashion retailers.

The omnichannel strategy sets players up for success over the forecast period

Growing e-commerce, including cross-border shops, both intensifies competition and offers an option for multi-channel sales without expanding chains of physical stores. Apparel and footwear are among the most popular purchased online; bringing opportunities for all key players to develop into the online space.

COMPETITIVE LANDSCAPE

Apranga SIA reworks its approach by offering fewer, larger stores, while the players also merge several of its e-commerce stores

Second-placed player Apranga SIA, came in just underneath H&M Hennes & Mauritz AB in 2019.

Sales are predicted to be driven by the opening of new shopping centres in 2019, as well as across the forecast period

Several new shopping centres opened in 2019, including Akropolis and furbished Alfa, which has expanded the pool of brands available to local shoppers. Players stores such as Oysho, VAN GRAAF, USC, Deichmann and Black Star Wear all opened for the first time in 2019.

Pepco opens in Latvia, with plans to expand rapidly to reach 30 outlets by 2020

Over the review period, Pepco, a European discounter chain offering apparel and household products, opened its first outlet in Latvia in the capital Riga. Pepco has announced plans to grow its presence in the country to 30 outlets by 2020.

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