Restrictions on the sale of alcohol have forced some stores to reduce working hours, and a 25% drop in turnover threatens the existence of small retail outlets in the regions.
Due to restrictions on the sale of alcoholic beverages, some stores in the top! chain and those managed by SIA Latvijas neatkarigo tirgotaju kooperacija in the Aibe chain are operating on reduced hours, retail traders surveyed reported.
Ilze Priede, a board member of the top! chain and marketing director, notes that the working hours have changed for some stores — hours have been reduced both in the morning and in the evening.
Juris Lamberts, the development director of Latvijas neatkarigo tirgotaju kooperacija, which manages the Aibe chain, emphasizes that entrepreneurs are making rational decisions. If there is no opportunity to earn enough, there is no point in keeping the store open. "Currently, about 80% of small stores operate only during the hours when alcohol sales are permitted, because it is unprofitable to pay sellers when there are no customers in the store. The more restrictions are introduced, the more difficult the situation is for traders," he said.
Lamberts also noted that there are signs that small store owners want to cease operations — either selling their business or closing their stores.
This could lead to people in the regions having a harder time purchasing food. He emphasized that the development of small stores is being hindered, and in the current competitive conditions, this is a very negative signal.
In response to a question about changes in alcohol turnover, Priede reported that there was a significant decrease in alcohol sales volume in top! stores in August. The decline continued in September and October, but began to stabilize compared to the same period last year.
It is also evident that more and more customers are choosing non-alcoholic alternatives, as well as increasingly preferring to buy higher quality and more expensive alcoholic beverages.
Lamberts noted that the overall volume of alcoholic beverage sales has decreased by about 25%. "On one hand, this is good — perhaps people are consuming less alcohol.
On the other hand, it would be foolish to live under the illusion that the number of drinkers has decreased by the same amount. Most likely, people are just stocking up, shopping at larger stores, or choosing to get intoxicated with illegal alcohol," he added.
Laila Vartukapteine, a board member of SIA Elvi Latvija, reported that Elvi is primarily a grocery and essential goods store, so restrictions on alcohol sales do not significantly impact the company's operations. She noted that the time for alcohol sales has become shorter, but the overall volume of beverages sold has not changed. Immediately after the regulations were adopted, there was a slight increase in turnover in this category of goods — obviously, people were stocking up — however, over time, consumer behavior stabilized, and now beverages are being purchased in the same volumes as last year.
Since the share of alcoholic beverages in Elvi's assortment is relatively small, no changes in working hours are planned specifically due to restrictions on alcohol sales. In the autumn and winter, some regional Elvi stores traditionally operate on reduced hours, and this will be the case this year as well.
As previously reported, from August 1 of this year, alcoholic beverages can be purchased from Monday to Saturday from 10:00 AM to 8:00 PM, and on Sundays from 10:00 AM to 6:00 PM.
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