Retailer Prisma to quit Latvia, Lithuania

There was bad news for workers and suppliers to the Prisma supermarket chain May 3 with the announcement that the Finnish-owned retailer is leaving the Latvian and Lithuanian markets.

A statement on the company's website by Jorma Vehviläinen, executive vice president  said: "Earlier this year we began to review our international business strategy. In the process, we came to the conclusion that our Prisma store market shares in Latvia and Lithuania are not big enough to be able to make a profitable business in the near future," and that future growth prospects were also limited.

Despite "investing heavily in both countries in recent years," the purchasing power of local consumers was not strong enough. Also the shutting down of a Prisma store in Deglava Street by building inspectors over safety concerns had "significantly weakened our performance in Latvia," the statement said.

There are three Prisma stores in Latvia and four in Lithuania. All will close in June. 

Commercial activities will be terminated in a controlled manner and the procedure will start with the sale in early May. Prisma will fulfill its obligations to suppliers and service providers.

Prisma stores in Estonia and Russia will continue to operate.

Related articles
2 comments
Janis
The amount of Western minded business offering good value for money that go out of business in Latvia truly amazes me. Locals say how much they want Western style shops, but when they come to Latvia the same locals don't support them. I guess it just was stylish enough...
Timo
With Prisma they really took a big hit in Riga when they could not renew their lease in Domina and lost their "flagship" Latvian store on Deglava. Those two were well situated and were quite popular among the shoppers. Their Imanta, "Sporta" (Grostonas) and Mūkusalas iela stores are not located well at all. I used to shop only at Prisma in Domina when I lived in Grizinkalns. I still miss all those own brands of milk products and other Finnish foods...
Comment
Comment using your social media profile
Economy
Economy