Top 7 Retail Trends in 2019

 

Looking back at the main developments in the retail sector, we can highlight the following as the main trends of the industry:

1. The retail sector continues to grow. Market growth in the first nine months of the year was 5%, driven by inflation, increased purchasing power and a change in people’s habits. Maxima Latvija’s turnover grew even stronger in the first nine months of the year, at a rate of 8% when compared with the same period in the previous year. This growth is closely linked with Maxima’s 2025 strategy, which aims to become the most appreciated retailer and is being implemented with a range of targeted activities: investment in the expansion of the store chain; low prices on a range of products in the long term; offering only the most relevant products; and other initiatives.  

2. Store formats adapting to people’s shopping habits. The Latvian public is most likely to select a store based on location, choosing one as close as possible to home or work. For this reason, Maxima opened a range of convenient, smaller stores in residential areas this year for everyday shopping. The second most important factor is a wide product range; bearing in mind increasing customer demand to be able to purchase everything necessary for everyday and special occasions in one place, Maxima this year opened the most modern Maxima XXX store in the Baltics at the Akropole shopping centre. In total, Maxima Latvija unveiled 21 new and renovated stores of various formats this year, of which around 40% were outside of Riga. 

3. Low prices: a key factor in the purchase decision-making process. Groceries and other basic necessities form a significant part of total household expenses, therefore their price significantly impacts general public wellbeing. This is why Maxima works every day to ensure that people who visit any of the chain’s 173 stores throughout Latvia know that a product can be purchased at a good price. This has been achieved by constantly considering efficiency and finding solutions enabling the lowest price to be offered, including optimisation of the delivery chain, close cooperation with local suppliers and Maxima Grupe businesses, as well as purchasing in higher quantities. At the same time, the speed of inflation has increased customer flow to the Maxima chain, whose turnover is growing significantly faster than the market in general.

5. Acceleration of e-commerce and technology. The latest technologies in retail are not an aim in of themselves, but rather are introduced for practical considerations: improving the customer shopping experience, increasing customer convenience and improving work efficiency. Online shopping is also increasing swiftly: turnover at Maxima’s online store, Barbora.lv, grew last year by almost 50%, which is linked with the introduction of new services including a mobile app, easier ordering, faster delivery and other services. Other players have now, after delaying for several years, come into the online market, which is promoting changes to customer habits and the general development of the sector.

6. Healthy eating.rocks The eating habits of the public are changing not just in Latvia, but around the world. Shoppers are more likely to eat healthily, paying particular attention to the contents of a product. Locally-produced products also play a significant role in people’s menus, which is why Maxima offers products by local producers and farmers in almost every product category. A particularly large selection can be found in the fresh vegetable range, where local products reach up to 80% in season. One of the fastest-growing demands in Maxima in 2019 was for vegan products. In addition to these products, Maxima offers a range of other niche items: gluten-free products (including a line of gluten-free cakes new to Maxima stores this year), lactose-free and diabetic products, as well as a variety of organic produce.

7. Food-to-go: both for eating in and taking away. Uniting a trip to the store with the enjoyment of a meal prepared right in front of customers is becoming an increasingly popular shopping ritual. Both in hypermarkets and Express stores, Maxima Latvija offers the chance to enjoy freshly-made craft burgers created with local ingredients, warm Belgian waffles, and Asian food delivered straight from Wok’n’Kurry. Expanding its range of to-go meals and baked goods, this year Maxima presented its latest food manufacturing facility, Maxima Pārtikas Fabrika, which is located in the Akropole shopping and entertainment centre. Maxima Pārtikas Fabrika ensures that an average of 1,000 people per day receive delicious meals as well as various treats from the bakery.

8. Retailers more active in lobbying for sustainability. Recognising global climate change, businesses are becoming more active in introducing various initiatives promoting sustainability. Thanks to a Maxima Latvija initiative, from July 1st this year, it will be possible to donate food to charities after its “best before” date, while the company will actively continue to propose laws allowing individuals to receive this food outside stores throughout Latvia. Coming out in favour of an open and transparent deposit return system, Maxima Latvija has also, alongside the Latvian retail sector, developed nine principles for a well-considered, effective system tailored in the interests of consumers, and whose implementation in 2020 will be an important issue for the whole of society.

 

 

Liene Dupate-Ugule
Head of Communications, SIA "Maxima Latvija"
Tel.: 26425420

email: liene.dupate@maxima.lv 
www.maxima.lv