Modern grocery retailers have continued to see strong growth in 2021, with value sales in real terms matching that seen in 2020; both years saw growth well above the average generated in the pre-pandemic period. There are a number of factors driving this.
German discounter chain Lidl finally launched its operations in Latvia in October 2021, with simultaneous openings of 15 stores across the country in Riga, Liepaja, Ventspils, Tukums, Jelgava, Ogre, Valmiera, Jekabpils, Rezekne and Daugavpils. This threatens to seriously disrupt the modern grocery retailer environment in Latvia.
Forecourt retailers have been the most dynamic part of the modern grocery category in 2021, generating double figure growth after restrictions on travel were eased over the year. Lockdown measures saw sales in the channel drop sharply in 2020; however, value sales in 2021 are still below pre-pandemic levels as consumer travel habits for both work and leisure have yet to return to normal.
Discounters are expected to grow the stronger growth over the forecast period, driven by significant investment from Lidl, novelty, and an increasingly price sensitive consumer base in the aftermath of the pandemic. Latvians have waited for years for Lidl to open in the country; its neighbour Lithuania has had the store since 2016, and consumer anticipation for the opening is high.
Larger chain operators including leading players Maxima Latvija SIA and Rimi Latvia SIA are investing in payment infrastructure, and increasing the number of self-service cashiers across their stores. There are sound reasons for doing so, including lower employee costs and (in theory) faster transaction rates, but demand for the technology has been accelerated by consumers during the pandemic.
Maxima Latvija SIA has announced that it is planning to move towards ‘equalizing’ their store formats. This means the retailers will be looking towards cutting the number of SKUS and a simplification of their offer, removing slow-moving consumer goods and leaving only the most popular assortment.
Delivery:
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
This report comes in PDF with additional info in Excel included.
Understand the latest market trends and future growth opportunities for the Modern Grocery Retailers industry in Latvia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Modern Grocery Retailers industry in Latvia, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
Modern grocery retailing is the aggregation of those grocery channels that have emerged alongside the growth of chained retail. For Euromonitor, modern grocery retailing is the aggregation of five channels: Hypermarkets, Supermarkets, Discounters, Forecourt Retailers and Convenience Stores. While there can be traditional (i.e. non-chained) supermarkets or forecourt retailers, for example, due to the store's presence in the channel, these stores are still considered as modern for Euromonitor International.
See All of Our DefinitionsThis report originates from Passport, our Modern Grocery Retailers research and analysis database.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!