Retailing in Latvia

Retailing in Latvia

EXECUTIVE SUMMARY

Increasing disposable incomes, convenient shopping solutions and a wide array of products results in a substantial growth in retailing

Convenience and low price points drive growth in modern grocery retailers, whereas an increase in excise tax results in decline for traditional grocery retailers

E-commerce is firmly on the rise, as more players enter the landscape in 2019, appealing to consumers through convenience, price points and home delivery

International players Pepco, IKEA and Lidl enter the landscape, set to boost growth in non-grocery retailers over the forecast period

Growth will be steady over the forecast period as players focus on enhancing their shopping experience through convenience, price points and digitalisation

OPERATING ENVIRONMENT

Informal retailing

Opening hours

Summary 1 Standard Opening Hours by Channel Type 2019

Physical retail landscape

Cash and carry

Seasonality

Ligo and Jani – midsummer days
Christmas and the New Year
Back to school

Payments and delivery

Emerging business models

MARKET DATA

Table 1 Sales in Retailing by Store-based vs Non-Store: Value 2014-2019
Table 2 Sales in Retailing by Store-based vs Non-Store: % Value Growth 2014-2019
Table 3 Sales in Store-Based Retailing by Channel: Value 2014-2019
Table 4 Sales in Store-Based Retailing by Channel: % Value Growth 2014-2019
Table 5 Store-Based Retailing Outlets by Channel: Units 2014-2019
Table 6 Store-Based Retailing Outlets by Channel: % Unit Growth 2014-2019
Table 7 Sales in Non-Store Retailing by Channel: Value 2014-2019
Table 8 Sales in Non-Store Retailing by Channel: % Value Growth 2014-2019
Table 9 Non-Grocery Specialists: Value Sales, Outlets and Selling Space 2014-2019
Table 10 Non-Grocery Specialists: Value Sales, Outlets and Selling Space: % Growth 2014-2019
Table 11 Sales in Non-Grocery Specialists by Channel: Value 2014-2019
Table 12 Sales in Non-Grocery Specialists by Channel: % Value Growth 2014-2019
Table 13 Non-Grocery Specialists Outlets by Channel: Units 2014-2019
Table 14 Non-Grocery Specialists Outlets by Channel: % Unit Growth 2014-2019
Table 15 Retailing GBO Company Shares: % Value 2015-2019
Table 16 Retailing GBN Brand Shares: % Value 2016-2019
Table 17 Store-based Retailing GBO Company Shares: % Value 2015-2019
Table 18 Store-based Retailing GBN Brand Shares: % Value 2016-2019
Table 19 Store-based Retailing LBN Brand Shares: Outlets 2016-2019
Table 20 Non-Store Retailing GBO Company Shares: % Value 2015-2019
Table 21 Non-Store Retailing GBN Brand Shares: % Value 2016-2019
Table 22 Non-Grocery Specialists GBO Company Shares: % Value 2015-2019
Table 23 Non-Grocery Specialists GBN Brand Shares: % Value 2016-2019
Table 24 Non-Grocery Specialists LBN Brand Shares: Outlets 2016-2019
Table 25 Non-Grocery Specialists LBN Brand Shares: Selling Space 2016-2019
Table 26 Forecast Sales in Retailing by Store-based vs Non-Store: Value 2019-2024
Table 27 Forecast Sales in Retailing by Store-based vs Non-Store: % Value Growth 2019-2024
Table 28 Forecast Sales in Store-Based Retailing by Channel: Value 2019-2024
Table 29 Forecast Sales in Store-Based Retailing by Channel: % Value Growth 2019-2024
Table 30 Forecast Store-Based Retailing Outlets by Channel: Units 2019-2024
Table 31 Forecast Store-Based Retailing Outlets by Channel: % Unit Growth 2019-2024
Table 32 Forecast Sales in Non-Store Retailing by Channel: Value 2019-2024
Table 33 Forecast Sales in Non-Store Retailing by Channel: % Value Growth 2019-2024
Table 34 Non-Grocery Specialists Forecasts: Value Sales, Outlets and Selling Space 2019-2024
Table 35 Non-Grocery Specialists Forecasts: Value Sales, Outlets and Selling Space: % Growth 2019-2024
Table 36 Forecast Sales in Non-Grocery Specialists by Channel: Value 2019-2024
Table 37 Forecast Sales in Non-Grocery Specialists by Channel: % Value Growth 2019-2024
Table 38 Forecast Non-Grocery Specialists Outlets by Channel: Units 2019-2024
Table 39 Forecast Non-Grocery Specialists Outlets by Channel: % Unit Growth 2019-2024

CORONAVIRUS (COVID-19)

SOURCES

Summary 2 Research Sources

Modern Grocery Retailers in Latvia

HEADLINES

PROSPECTS

The expansion of modern grocery stores is driven by changing consumer habits, as many are accustomed to using modern outlets for a one-stop-shop

As Lidl is set to enter the landscape in 2020, other key players take pre-emptive measures

Growth is set to slow down in line the slowing economic growth, and the threat of e-commerce

COMPETITIVE LANDSCAPE

Maxima Latvija SIA leads, introducing the largest hypermarket to Latvia and expanding its e-commerce experience

Rimi completes its conversion, rebranding Supernetto into Rimi supermarkets

Mego has expanded, as Ciltro is set to unite 68 grocery stores for its launch in 2020

CHANNEL DATA

Table 40 Modern Grocery Retailers: Value Sales, Outlets and Selling Space 2014-2019
Table 41 Modern Grocery Retailers: Value Sales, Outlets and Selling Space: % Growth 2014-2019
Table 42 Sales in Modern Grocery Retailers by Channel: Value 2014-2019
Table 43 Sales in Modern Grocery Retailers by Channel: % Value Growth 2014-2019
Table 44 Modern Grocery Retailers Outlets by Channel: Units 2014-2019
Table 45 Modern Grocery Retailers Outlets by Channel: % Unit Growth 2014-2019
Table 46 Modern Grocery Retailers GBO Company Shares: % Value 2015-2019
Table 47 Modern Grocery Retailers GBN Brand Shares: % Value 2016-2019
Table 48 Modern Grocery Retailers LBN Brand Shares: Outlets 2016-2019
Table 49 Modern Grocery Retailers LBN Brand Shares: Selling Space 2016-2019
Table 50 Modern Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space 2019-2024
Table 51 Modern Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2019-2024
Table 52 Forecast Sales in Modern Grocery Retailers by Channel: Value 2019-2024
Table 53 Forecast Sales in Modern Grocery Retailers by Channel: % Value Growth 2019-2024
Table 54 Forecast Modern Grocery Retailers Outlets by Channel: Units 2019-2024
Table 55 Forecast Modern Grocery Retailers Outlets by Channel: % Unit Growth 2019-2024

Traditional Grocery Retailers in Latvia

HEADLINES

PROSPECTS

Traditional grocery retailers fight back against declining growth by focusing on specialist items

Rise in excise duty on alcohol and tobacco impacts how alcohol tourism drives sales

Growth in the traditional channel is threatened by modern grocery retailers and the booming e-commerce trade

COMPETITIVE LANDSCAPE

Despite the threats of reduced alcohol tourism, alcoholic drinks specialists remain the leading players

SIA Kurzemes Galsaimnieks and SIA Forevers expand their specialist meat chains to appeal to consumers with their focused product knowledge

As the eco-friendly trend grows, traditional retailers launch zero-waste outlets, appealing to environmentally aware consumers

CHANNEL DATA

Table 56 Traditional Grocery Retailers: Value Sales, Outlets and Selling Space 2014-2019
Table 57 Traditional Grocery Retailers: Value Sales, Outlets and Selling Space: % Growth 2014-2019
Table 58 Traditional Grocery Retailers GBO Company Shares: % Value 2015-2019
Table 59 Traditional Grocery Retailers GBN Brand Shares: % Value 2016-2019
Table 60 Traditional Grocery Retailers LBN Brand Shares: Outlets 2016-2019
Table 61 Traditional Grocery Retailers LBN Brand Shares: Selling Space 2016-2019
Table 62 Traditional Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space 2019-2024
Table 63 Traditional Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2019-2024

Apparel and Footwear Specialist Retailers in Latvia

HEADLINES

PROSPECTS

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

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

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

COMPETITIVE LANDSCAPE

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

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

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

CHANNEL DATA

Table 64 Apparel And Footwear Specialist Retailers: Value Sales, Outlets and Selling Space 2014-2019
Table 65 Apparel And Footwear Specialist Retailers: Value Sales, Outlets and Selling Space: % Growth 2014-2019
Table 66 Apparel And Footwear Specialist Retailers GBO Company Shares: % Value 2015-2019
Table 67 Apparel And Footwear Specialist Retailers GBN Brand Shares: % Value 2016-2019
Table 68 Apparel And Footwear Specialist Retailers LBN Brand Shares: Outlets 2016-2019
Table 69 Apparel And Footwear Specialist Retailers LBN Brand Shares: Selling Space 2016-2019
Table 70 Apparel And Footwear Specialist Retailers Forecasts: Value Sales, Outlets and Selling Space 2019-2024
Table 71 Apparel And Footwear Specialist Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2019-2024

Health and Beauty Specialist Retailers in Latvia

HEADLINES

PROSPECTS

Demographic changes impact pharmacies in the country, who turn to e-commerce to boost sales

As Latvians buy drugs from other nations, value sales in health and beauty specialists suffer

The growing health and wellness trend boosts growth levels for health and beauty specialists

COMPETITIVE LANDSCAPE

Sentor Farm remains the top player in overall health and beauty specialist retailing

Drogas remains the leading player in beauty specialist retailers, however, the future of Dzintars is uncertain

Chemists/pharmacies drive the growth of health and wellness specialists, as e-commerce pharmacies expand

CHANNEL DATA

Table 72 Health and Beauty Specialist Retailers: Value Sales, Outlets and Selling Space 2014-2019
Table 73 Health and Beauty Specialist Retailers: Value Sales, Outlets and Selling Space: % Growth 2014-2019
Table 74 Sales in Health and Beauty Specialist Retailers by Channel: Value 2014-2019
Table 75 Sales in Health and Beauty Specialist Retailers by Channel: % Value Growth 2014-2019
Table 76 Health and Beauty Specialist Retailers GBO Company Shares: % Value 2015-2019
Table 77 Health and Beauty Specialist Retailers GBN Brand Shares: % Value 2016-2019
Table 78 Health and Beauty Specialist Retailers LBN Brand Shares: Outlets 2016-2019
Table 79 Health and Beauty Specialist Retailers LBN Brand Shares: Selling Space 2016-2019
Table 80 Health and Beauty Specialist Retailers Forecasts: Value Sales, Outlets and Selling Space 2019-2024
Table 81 Health and Beauty Specialist Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2019-2024
Table 82 Forecast Sales in Health and Beauty Specialist Retailers by Channel: Value 2019-2024
Table 83 Forecast Sales in Health and Beauty Specialist Retailers by Channel: % Value Growth 2019-2024

Mixed Retailers in Latvia

HEADLINES

PROSPECTS

After declining growth over the review period, mixed retailers is showing signs of recovery

Variety stores have opened the most doors, benefiting from lower unit prices, attracting low-income consumers

Department stores modernise to retain a consumer base, however shopping centres attract a growing number of consumers, through their doors

COMPETITIVE LANDSCAPE

Stockmann leads department stores, whereas Elkor registers the strongest value growth in 2019

Stockmann brings digital to the forefront of its business while offering a range of diverse brands to consumers

Studio Moderna expands its physical stores, as well as investing in e-commerce to remain competitive

CHANNEL DATA

Table 84 Mixed Retailers: Value Sales, Outlets and Selling Space 2014-2019
Table 85 Mixed Retailers: Value Sales, Outlets and Selling Space: % Growth 2014-2019
Table 86 Sales in Mixed Retailers by Channel: Value 2014-2019
Table 87 Sales in Mixed Retailers by Channel: % Value Growth 2014-2019
Table 88 Mixed Retailers Outlets by Channel: Units 2014-2019
Table 89 Mixed Retailers Outlets by Channel: % Unit Growth 2014-2019
Table 90 Mixed Retailers GBO Company Shares: % Value 2015-2019
Table 91 Mixed Retailers GBN Brand Shares: % Value 2016-2019
Table 92 Mixed Retailers LBN Brand Shares: Outlets 2016-2019
Table 93 Mixed Retailers LBN Brand Shares: Selling Space 2016-2019
Table 94 Mixed Retailers Forecasts: Value Sales, Outlets and Selling Space 2019-2024
Table 95 Mixed Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2019-2024
Table 96 Forecast Sales in Mixed Retailers by Channel: Value 2019-2024
Table 97 Forecast Sales in Mixed Retailers by Channel: % Value Growth 2019-2024
Table 98 Forecast Mixed Retailers Outlets by Channel: Units 2019-2024
Table 99 Forecast Mixed Retailers Outlets by Channel: % Unit Growth 2019-2024

Direct Selling in Latvia

HEADLINES

PROSPECTS

Direct selling records high levels of growth, boosted by increasing incomes and motivated sales agents

Direct sellers offer their own online channels to compete against the threat of

e-commerce

Beauty and personal care are the backbone of the industry, with sales boosted by the growing health and wellness trend

COMPETITIVE LANDSCAPE

The landscape is highly fragmented as many local consultants represent multiple brands

Avon Cosmetics SIA leads, benefiting from its well-known name and loyal consumers

Filuet Baltica retains its second-place position in 2019, benefiting from representing Herbalife, which offers nutritional supplements and beauty products to consumers

CHANNEL DATA

Table 100 Direct Selling by Category: Value 2014-2019
Table 101 Direct Selling by Category: % Value Growth 2014-2019
Table 102 Direct Selling GBO Company Shares: % Value 2015-2019
Table 103 Direct Selling GBN Brand Shares: % Value 2016-2019
Table 104 Direct Selling Forecasts by Category: Value 2019-2024
Table 105 Direct Selling Forecasts by Category: % Value Growth 2019-2024

E-Commerce in Latvia

HEADLINES

PROSPECTS

E-commerce continues to record strong growth in Latvia, as the amount of regular internet users increases

The rise in grocery e-commerce is set to strengthen over the forecast period, as Rimi’s launches its e-commerce store in 2020

Cross-border shopping is increasing, as consumers use the international site to purchase apparel and footwear, electronics, home appliances and cosmetics

COMPETITIVE LANDSCAPE

Rimi Latvia SIA is set to launch its e-commerce platform in 2020, which will shake up the competitive landscape

Kesko Senukai buys the platform 1a.lv, strengthen the retailer presence in 2019

Health and beauty specialist Drogas ventures into the online channel, as Pingu Group allows independent sellers to sell through their own channel

CHANNEL DATA

Table 106 E-Commerce by Channel and Category: Value 2014-2019
Table 107 E-Commerce by Channel and Category: % Value Growth 2014-2019
Table 108 E-Commerce GBO Company Shares: % Value 2015-2019
Table 109 E-Commerce GBN Brand Shares: % Value 2016-2019
Table 110 Forecast E-Commerce by Channel and Category: Value 2019-2024
Table 111 Forecast E-Commerce by Channel and Category: % Value Growth 2019-2024

Mobile E-Commerce in Latvia

HEADLINES

PROSPECTS

Mobile e-commerce grows faster than e-commerce, boosted by the increasing sales of smartphones and consumers changing mobile habits

Mobile e-commerce is supported by consumers increasingly busy lifestyles, partnered with and new technology

Consumers in 2019 are still cautious of paying through a mobile phone, however, this is set to change over the forecast period

COMPETITIVE LANDSCAPE

Mobile e-commerce is set to become a key part of a successful multi-channel strategy

Cross border applications such as Wish and AliExpress gain popularity in Latvia

Mobile e-commerce for food delivery services and restaurants gained popularity in 2019

CHANNEL DATA

Table 112 Mobile E-Commerce: Value 2014-2019
Table 113 Mobile E-Commerce: % Value Growth 2014-2019
Table 114 Mobile E-Commerce Forecasts: Value 2019-2024
Table 115 Mobile E-Commerce Forecasts: % Value Growth 2019-2024

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