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Saturday, 23.11.2024, 09:59
Lidl tops Lithuania's retailer list in terms of investment in 2018
Lidl Lietuva
opened 11 new stores, but the total number of new openings by the country's top
five supermarket chains dropped to 25 this year, from 28 in 2017. The
total number of retail outlets operated by the five chains reached 716
stores.
Maxima LT, a
company of the Vilniaus Prekyba Group,
and Norfos Mazmena, a company
controlled by Lithuanian businessman Dainius
Dundulis, opened five new stores each.
Iki, which is
controlled by Germany's Rewe, opened
three new stores, and Swedish-owned Rimi opened one store this year which
saw them fail to obtain regulatory approval for their planned
merger.
The country's major chains renovated 20 stores in 2018,
unchanged from last year. Maxima carried out the largest number of renovation
projects, at 13, followed by Iki with six and Rimi with one.
Laurynas Vilimas,
executive director at the Lithuanian Retailers' Association, says these
trends are logical, with market incumbents focusing on renovation and Lidl
still building its chain.
"Lithuania still lags behind the EU average in terms
of square meters of grocery retail space per capita, but we are caching
up. We have neither too many nor too few stores," Vilimas
said.
"In a small market like ours, businesses compete by
their ability to be as close to their buyer as possible. We can see that
businesses are developing, which shows their confidence in the
market," he added.
Mindaugas Kulbokas,
head of research and analysis at the real estate company Newsec Advisers LT, says that in the
face of growing customer disloyalty, retailers will have to optimize
their retail space or continue investing in store renovations in
2019.
"The year 2019 will be key for retailers in seeking
clarity as to which way to go in the long run. Some will look
for development opportunities, while others will focus more on cost
optimization, and still others will pay more attention to customers,"
he told.
Both experts believe that Lidl's intensive development and renewed expansion by Iki and Rimi will have an impact on the market's results in 2019.