German low-price store network Lidl entry into Latvia’s market will intensify competition for employees, said CEO of Latvian Association of Food Traders (LPTA) Noris Kruzitis.
He said that all market participants were currently lacking employees. Kruzitis said trading was not the industry in which wage levels were high. This is why reviewing anything in the industry will be hard.
This is why it will be a challenge for Lidl to open stores and train employees. Competition for employees is expected to become more intense.
According to Kruzitis, everything points to Lidl entering Latvia’s market in the next couple of years. Land is currently being bought and construction of shopping centers is being planned.
According to LPTA CEO, Lidl will enter Latvia’s market with more than ten stores simultaneously.
The entry of the German network could liven up the market and create more competition, which would benefit existing traders, Kruzitis said. He said Lidl’s entry would directly affect low-price store segment. Sepernetto is currently the leader in this market segment. Still, it will affect all traders.
LPTA representative says buyers’ habits in Europe, where Lidl is used to working, differ from habits in Latvia. While European buyers prefer buying wholesale, spend less money on everyday purchases, expenses of Latvian residents are not as high. People in Latvia go to shops more often and pick fresh products, mostly locally made products. (BNN/Business World Magazine)
