Maxima Grupe's Latvian business, Maxima Latvija, plans to invest more than €34 million this year on expanding its operations, after what the business described as a 'turning point' year in 2018.
The business posted turnover of €776.6 million in 2018, which was a 6.4% increase compared to the previous year.
Expansion Process
Last year, the group invested €18 million in expanding and renewing its operations in the country, as well as improving the 'shopping ambience' of its stores, a process that led it to post a net profit of €21.9 million.
It opened six new stores and renovated 10 existing outlets, implementing new LED lighting, environmentally-friendly refrigeration equipment and some 269 self-service checkouts.
Another achievement last year was the awarding of a BB+ credit rating to Maxima Grupe, which successfully issued bonds totalling €300 million with a five-year maturity.
This enabled the company to invest in its store network, as well as improve customer service and introduce new solutions and efficiency standards to offer lower prices to customers, the retailer said.
"We achieved strong results by lowering prices, investing in improved shopping experience for our customers and better work environment for our people, and developing new store formats," commented Andris Vilcmeiers, chairman of the board at Maxima Latvija. "This year we will continue with our focus on low prices, better customer service, strong expansion in residential areas, greater product assortment and sustainability of our operations."
Plans for 2019
This year, Maxima Latvija said that it will 'continue to significantly expand' its store chain, opening several new large-format stores, a range of smaller stores, and renovating 10 existing stores, some of which will be 'significantly' expanded.
It has also pledged to make shopping 'more convenient and accessible' for shoppers, and improve customer service.
In March, the group announced the appointment of Valdis Zeps, a former Circle K executive, as its new chief financial officer.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
