(DG JRC/IPTS) - agrilife - Europa

Latvia
The food retail sector in Latvia
The relevant product market should include all sources of supply of daily consumer
goods, i.e. hypermarkets, self-service stores, discount outlets, specialized shops,
neighbourhood stores, kiosks, petrol station shops, open and closed markets
(particularly important in Latvia), i.e. all retail sales which fall under the national
statistics of total market with food predominating. This would be due to special
characteristics of the market structure in the Latvia with high number of open markets
(functional all year around), small neighbourhood stores and specialised outlets.
Beside there is a clear trend in the Baltic States towards an increase in shopping in
supermarkets and hypermarkets.
The consolidation process of the retail market and the rapid inflow of
Scandinavian/European retailers has increased the competition and contributed to the
growth of the sector.
Since the Nordic investors entered the Latvian retail food market in the mid nineties.
Swedish/Norwegian/Dutch ICA Ahold, with its daughter company ICA Baltic (Rimi
chain), Lithuania’s Vilnius Prekybos and Finland’s Kesko have emerged as the
leading newcomers.
In Latvia Kesko is active in the retailing of daily consumer goods, whereas it does not
operate as a wholesaler. Kesko operates in Latvia with 5 hypermarkets and 11
discount stores, whereas ICA is the second largest operator in Latvia with 4 Rimi
hypermarkets and 33 Rimi supermarkets.
ICA is active in wholesaling and retailing of daily consumer goods mainly on the
Swedish and Norwegian markets. Through a number of subsidiaries, ICA is also
active in retail of daily consumer goods in Latvia and other Baltic states. However,
ICA does not operate as a wholesaler in these countries.
By the end of 2002, two Finnish companies Stockman plc. and Rautakirja Oyj built
a multifunctional shopping centre in the central part of the capital, and opened a new
supermarket.
The German “Sky” chain is also present in the market.
The largest Latvian owned chains are Mego, Nelda, Beta and Elvi.
Mego Chain
Country of origin: Latvia
Diffusion of the scheme in the various countries: Latvia
Name of the subject responsible for the drafting of the standard: Mego chain
Proposer typology: small and medium size retailer and medium and large scale
wholesaler
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