RETAIL TRADE AS AN ACTOR IN BALANCED SPATIAL PLANNING AND SUSTAINABLE DEVELOPMENT
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1 AS AN ACTOR IN BALANCED SPATIAL PLANNING AND SUSTAINABLE DEVELOPMENT LATVIA : MAJOR RETAIL GROUPS AND LOCAL STORES M. Henriks Danusevics, President of Latvian Traders s Association (Latvia)
2 LATVIAN TRADERS ASSOCIATION Founded
3 GREETINGS FROM LATVIA! RIGA
4 The Retail, Wholesale and International Trade Representation to the European Union Euro Commerce National Association (24) European & International Association (19) Latvian Traders association: Member from
5 Latvijas Tirgotāju asociācija TOTAL TURNOVER (at current prices; million LVL; 1 LVL=2 USD) , , , ,5 2036,98 Turnover, million LVL
6 History of white trade 1998
7 History black trade 1998
8 Grocery retail market structure in the Baltic Estonia Latvia Lithuania Firm % Firm % Firm % 1 ETK Grupp 25 Rimi 22 VP Market 38 2 Rimi Eesti 25 VP Market 21 Iki 14 3 A-Selver 12 Mego 4 Norfa Retail 13 4 Soome SOK 8 Nelda 3 Rimi Lithuania 6 HHI a CR a Period
9 Grocery retail market structure in selected European countries in 2004 UK Ireland Germany Slovakia Sweden Firm % Firm % Firm % Firm % Firm % 1 Tesco 2 Tesco 3 16 Edeka 14 Tesco 10 ICA Sverige 36 2 Musgrave 4 Sainsbury 1 14 Rewe 12 Lidl & Schwarz 8 Axfood 17 3 Asda 1 Spar 2 8 Aldi 11 Metro 7 Coop Norden 14 4 Morrison 1 Dunnes 0 7 Lidl & Schwarz 10 Rewe 4 Bergendahls Gruppen 3 HHI CR
10 Table 2 (continued) Bulgaria Croatia Czech Republic Hungary Poland Firm % Firm % Firm % Firm % Firm % 1 Metro 8.1 Konzum 15.1 Lidl & Schwarz 9.3 Coop Hungary 14.0 Metro Rewe 1.2 Getro 8.7 Metro 9.0 Tesco 13.8 Jeronimo Martins Fantastico 0.5 Metro 4.7 Ahold 8.7 Metro 9.0 Tesco Piccadily 0.4 Coop Italia 3.3 Rewe 6.1 CBA 8.3 Auchan 2.3 HHI CR
11 Table 2 (continued) Romania Russia Ukraine Firm % Firm % Firm % 1 Metro 7.3 Pyaterochka 0.7 Fozzy Group Carrefour 1.5 Metro 0.7 Metro Rewe 1.1 Perekriostok 0.4 Furshet Cora-Louis Delhaize 0.6 Ramstore 0.3 Rewe 0.3 HHI CR 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 in NACE
12 Latvian Trade Leaders (at current prices; million LVL; 1 LVL=2 USD) RIMI Latvia* 245,82 309,2 381,2 2 VP Market 232,56 290,7 339,8 3 AIBE 56,8 95,1 114,0 4 Baltstor (Mego + Vesko) ,5 136,6 5 ELVI grupa 46,61 65,25 93,0 6 Nelda 37,10 43,9 60,5 7 Iepirkuma grupa (TOP!) 45,25 47,81 67,0 8 Zemniecība (Beta) 29,4 33,6 33,6 9 Skai Baltija 12,69 19,8 30,0 10 Palink 4,4 13,639 27,268 Total in country 2.650, , * Ieskaitot Kesko Food
13 Latvian trade leaders RIMI 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)
14 Palink
15 SKY
16 Beta
17 Nelda
18 Mego
19 Maxima
20 RIMI
21 Development International 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
22 Local chains: slowly development with building of new shops to high self valuating of chain psychological problem of co-operation second business
23 Separate shops: definitely co-operation Models: franchise on base of foreign model ( Narvesen, R-Kiosk )
24 Narvesen
25 Separate shops: definitely co-operation Мodels: franchise on base self-developed model (German origin) ( Elvi )
26 ELVI
27 Separate shops: definitely co-operation Models: agreements with small traders and small packets of action ( Aibe )
28 Aibe
29 Aibe (mlj. lats) (at current prices; million LVL; 1 LVL=2 USD) Turnover 11,4 38,4 50, ,4 115,2 Traders Objects
30 Separate shops: definitely co-operation Other models: agreement with traders ( Lats ) agreements on base of self-owned whole sale and manufactures ( TOP )
31 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?
32 Today Is globalisation good resolution for trade? More colour more benefits for consumer (assortment) and state (development of local producers)? More stabile finance system, employment and market power?
33 Euroshop
34 Proposals Regulation of suppliers with important influence on local (national) market, Open financial support for traders in rural area or underdeveloped or extinct regions, Restriction for shares in retail (no more then 30 percent of market).
35 Be optimistic!
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