Maxima Latvia will invest €50m (US$56m) in three priority areas over the next 12 months following the impact placed on the business by the coronavirus (COVID-19) pandemic. The initiatives include lowering prices, ensuring public health and sustainability and growing its store numbers.
CEO: ‘we have revisited Maxima Latvia’s growth strategy’
Commenting on the new measures, Maxima Latvia’s CEO, Viktors Troicins, said: “We recognise that the impact of the pandemic on the economy and society as a whole will be very significant, which is why we have revisited Maxima Latvija’s growth strategy to put a greater focus on supporting people. We recognise that we must do everything we can as a leading retailer to ensure that our customers in Latvia have better access to high-quality products at lower prices every day … Meanwhile, the introduction of effective business management solutions allows us to adapt to new circumstances, continuing cautious, yet well-considered growth and the development of the store chain in 2020, thus bringing added value to the Latvian economy as a whole.”
Due to COVID-19 and the impact it is having and is expected to have on the economy, an increasing number of people are taking notice of their daily spending and attempting to reduce expenses. The retailer has recognised this and will continue its long-term price lowering programme of reducing prices on fresh produce and necessities, by up to 40%. The retailer has allocated €7.2m (US$8m) for this measure.
Public health and sustainability
Furthermore, the retailer will continue its partnerships with government institutions to ensure measures are in place to control the potential spread of COVID-19. It will support health initiatives for children, youth sports and cultural schemes.
Regarding sustainability, it will continue its environmental sustainability policy and will promote public issues such as VAT reduction on meat and milk, among others, to make these products more accessible for everyone.
Expanding store presence
Finally, Maxima plans to open 12 new stores in Riga and renovate a further seven. It has said it will assign €34m (US$38.1m) for this part of its strategy. The venture will also include new technologies and digital solutions, such as self-service checkouts, digital price tags and expansion of its online store.