LATVIA : MAJOR RETAIL GROUPS ANDLOCAL STORESM. Henriks Danusevics, President of LatvianTraders’s Association (Latvia)

RETAIL TRADEAS AN ACTOR IN BALANCED SPATIAL PLANNING ANDSUSTAINABLE DEVELOPMENT

LATVIANTRADERS’ ASSOCIATION

Founded 12.04.1994

GREETINGS FROM LATVIA!

RIGARETAIL TRADEAS AN ACTOR IN BALANCED SPATIAL PLANNING AND SUSTAINABLE DEVELOPMENT

The Retail, Wholesale and InternationalTrade Representation to the European Union

“Euro Commerce”www.eurocommerce.be

NationalAssociation (24)

European &International

Association (19)

Latvian Traders’ association: Member from 01.01.1998.www.lta.lv; www.trade.lv; www.tirgotajs.lv

RETAIL TRADEAS AN ACTOR IN BALANCED SPATIAL PLANNING AND SUSTAINABLE DEVELOPMENT

TOTAL RETAIL TRADE TURNOVER (at current prices; million LVL; 1 LVL=2 USD)

Latvijas Tirgotāju asociācija

1498,421698,5

2036,98

2650,32

3282,62

0

500

1000

1500

2000

2500

3000

3500

2002 2003 2004 2005 2006

Turnover,million LVL

RETAIL TRADEAS AN ACTOR IN BALANCED SPATIAL PLANNING AND SUSTAINABLE DEVELOPMENT

History of “white” trade

1998RETAIL TRADEAS AN ACTOR IN BALANCED SPATIAL PLANNING AND SUSTAINABLE DEVELOPMENT

History – “black” trade

1998RETAIL TRADEAS AN ACTOR IN BALANCED SPATIAL PLANNING AND SUSTAINABLE DEVELOPMENT

Grocery retail market structure in the Baltic

200520052005Period

72a5070CR

1869a9631510HHI

6Rimi Lithuania3Nelda8Soome SOK4

13Norfa Retail4Mego12A-Selver3

14Iki21VP Market25Rimi Eesti2

38VP Market22Rimi25ETK Grupp1

%Firm%Firm%Firm

LithuaniaLatviaEstonia

RETAIL TRADEAS AN ACTOR IN BALANCED SPATIAL PLANNING AND SUSTAINABLE DEVELOPMENT

Grocery retail market structure in selectedEuropean countries in 2004

6929464559CR

1748241612598966HHI

3BergendahlsGruppen

4Rewe10Lidl &Schwarz

7Dun-nes

10

Morrison4

14CoopNorden

7Metro11Aldi8Spar12

Asda3

17Axfood8Lidl &Schwarz

12Rewe14Mus-grave

14

Sains-bury

2

36ICASverige

10Tesco14Edeka16Tesco23

Tesco1

%Firm%Firm%Firm%Firm%Firm

SwedenSlovakiaGermanyIrelandUK

RETAIL TRADEAS AN ACTOR IN BALANCED SPATIAL PLANNING AND SUSTAINABLE DEVELOPMENT

Table 2 (continued)

13.545.133.131.810.2CR

6161030434467HHI

2.3Auchan8.3CBA6.1Rewe3.3CoopItalia

0.4Picca-dily

4

2.7Tesco9.0Metro8.7Ahold4.7Metro0.5Fantas-tico

3

2.8JeronimoMartins

13.8Tesco9.0Metro8.7Getro1.2Rewe2

5.7Metro14.0CoopHungary

9.3Lidl &Schwarz

15.1Kon-zum

8.1Metro1

%Firm%Firm%Firm%Firm%Firm

PolandHungaryCzechRepublic

CroatiaBulgaria

RETAIL TRADEAS AN ACTOR IN BALANCED SPATIAL PLANNING AND SUSTAINABLE DEVELOPMENT

Table 2 (continued)

2.82.110.5CR

2.61.357HHI

0.3Rewe0.3Ramstore0.6Cora-LouisDelhaize

4

0.5Furshet0.4Perekriostok1.1Rewe3

0.7Metro0.7Metro1.5Carrefour2

1.3Fozzy Group0.7Pyaterochka7.3Metro1

%Firm%Firm%Firm

UkraineRussiaRomania

Notes: HHI: Herfindahl Hirschman Index calculated from the market shares of the 6 largest firms,excluding franchises. CR: 4-firm concentration ratio. aBased on 5 firms only. The base is sales inNACE 52.11.

RETAIL TRADEAS AN ACTOR IN BALANCED SPATIAL PLANNING AND SUSTAINABLE DEVELOPMENT

Latvian Trade Leaders (at current prices; million LVL; 1 LVL=2 USD)

...3.282,6162.650,318Total in country

27,26813,6394,4Palink10

30,019,812,69Skai Baltija9

33,633,629,4Zemniecība (Beta)8

67,047,8145,25Iepirkuma grupa (TOP!)7

60,543,937,10Nelda6

93,065,2546,61ELVI grupa5

136,6136,5107Baltstor (Mego + Vesko)4

114,095,156,8AIBE3

339,8290,7232,56VP Market2

381,2309,2245,82RIMI Latvia*1

200720062005

* Ieskaitot Kesko Food

RETAIL TRADEAS AN ACTOR IN BALANCED SPATIAL PLANNING AND SUSTAINABLE DEVELOPMENT

Latvian trade leadersRIMI – Scandinavian owned (economic+ class)Maxima – Lithuanian owned (economic class)Aibe – Lithuanian and Latvian owned chain(economic class)Mego – Latvian owned shop (economic class)Elvi – Latvian franchise shop chain (middle class)Nelda – Latvian owned shop (economic class)Beta – Latvian owned shop (economic class)Sky – Latvian owned shop (middle+ class)IKI – French owned chain (economic class)

RETAIL TRADEAS AN ACTOR IN BALANCED SPATIAL PLANNING AND SUSTAINABLE DEVELOPMENT

Palink

RETAIL TRADEAS AN ACTOR IN BALANCED SPATIAL PLANNING AND SUSTAINABLE DEVELOPMENT

SKY

RETAIL TRADEAS AN ACTOR IN BALANCED SPATIAL PLANNING AND SUSTAINABLE DEVELOPMENT

Beta

RETAIL TRADEAS AN ACTOR IN BALANCED SPATIAL PLANNING AND SUSTAINABLE DEVELOPMENT

Nelda

RETAIL TRADEAS AN ACTOR IN BALANCED SPATIAL PLANNING AND SUSTAINABLE DEVELOPMENT

Mego

RETAIL TRADEAS AN ACTOR IN BALANCED SPATIAL PLANNING AND SUSTAINABLE DEVELOPMENT

Maxima

RETAIL TRADEAS AN ACTOR IN BALANCED SPATIAL PLANNING AND SUSTAINABLE DEVELOPMENT

RIMI

RETAIL TRADEAS AN ACTOR IN BALANCED SPATIAL PLANNING AND SUSTAINABLE DEVELOPMENT

DevelopmentInternational chains:

– acquisition of existing national chains, if trade standards is

similar and public opinion is positive

– acquisition of ground and building trade objects

– acquisition of separate shops and reconstruction

RETAIL TRADEAS AN ACTOR IN BALANCED SPATIAL PLANNING AND SUSTAINABLE DEVELOPMENT

Local chains:– slowly development with building of new

shops– to high self valuating of chain– psychological problem of co-operation– second business

RETAIL TRADEAS AN ACTOR IN BALANCED SPATIAL PLANNING AND SUSTAINABLE DEVELOPMENT

Separate shops:definitely co-operation

Models:– franchise on base of foreign model

(“Narvesen”, “R-Kiosk”)

RETAIL TRADEAS AN ACTOR IN BALANCED SPATIAL PLANNING AND SUSTAINABLE DEVELOPMENT

Narvesen

RETAIL TRADEAS AN ACTOR IN BALANCED SPATIAL PLANNING AND SUSTAINABLE DEVELOPMENT

Separate shops:definitely co-operation

Мodels:– franchise on base self-developed model

(German origin) (“Elvi”)

RETAIL TRADEAS AN ACTOR IN BALANCED SPATIAL PLANNING AND SUSTAINABLE DEVELOPMENT

ELVI

RETAIL TRADEAS AN ACTOR IN BALANCED SPATIAL PLANNING AND SUSTAINABLE DEVELOPMENT

Separate shops:definitely co-operation

Models:– agreements with small traders and small

packets of action (“Aibe”)

RETAIL TRADEAS AN ACTOR IN BALANCED SPATIAL PLANNING AND SUSTAINABLE DEVELOPMENT

Aibe

RETAIL TRADEAS AN ACTOR IN BALANCED SPATIAL PLANNING AND SUSTAINABLE DEVELOPMENT

Aibe (mlj. lats)(at current prices; million LVL; 1 LVL=2 USD)

418451445368301100Objects

1501641501148022Traders

115,286,45850,438,411,4Turnover

200720062005200420032002

RETAIL TRADEAS AN ACTOR IN BALANCED SPATIAL PLANNING AND SUSTAINABLE DEVELOPMENT

Separate shops:definitely co-operation

Other models:– agreement with traders (“Lats”)– agreements on base of self-owned whole sale

and manufactures (“TOP”)

RETAIL TRADEAS AN ACTOR IN BALANCED SPATIAL PLANNING AND SUSTAINABLE DEVELOPMENT

Development stages:– privatizing:

– property (goods and cattle),– real (lodging),

– development on consumer oriented shop,– involvement of leading experience, modernizing,

copying of successful models,– entrance of international chains, globalization,

co-operation,– “bright future” - balance or domination?

RETAIL TRADEAS AN ACTOR IN BALANCED SPATIAL PLANNING AND SUSTAINABLE DEVELOPMENT

Today

Is globalisation good resolution for trade? More “colour” more benefits forconsumer (assortment) and state(development of local producers)?More stabile finance system, employmentand market power?

RETAIL TRADEAS AN ACTOR IN BALANCED SPATIAL PLANNING AND SUSTAINABLE DEVELOPMENT

Euroshop

RETAIL TRADEAS AN ACTOR IN BALANCED SPATIAL PLANNING AND SUSTAINABLE DEVELOPMENT

Proposals

Regulation of suppliers with importantinfluence on local (national) market,

Open financial support for traders inrural area or underdeveloped or extinctregions,

Restriction for shares in retail (nomore then 30 percent of market).

RETAIL TRADEAS AN ACTOR IN BALANCED SPATIAL PLANNING AND SUSTAINABLE DEVELOPMENT

Be optimistic!

RETAIL TRADEAS AN ACTOR IN BALANCED SPATIAL PLANNING AND SUSTAINABLE DEVELOPMENT