SIA “Reitan Convenience Latvia”, which manages the chain of retail franchise networks “Narvesen” and “Caffeine” cafes, worked in 2022 with the highest turnover in the history of the company – 80.3 million euros, which is 28.6% more than in 2021.
Despite various challenges and disruptions in logistics chains, strategic decisions on network development have made it possible to significantly improve financial results and reduce losses by five times compared to the previous year.
“Reitan Convenience Latvia’s” operating results in 2022 have been affected both by Russia’s criminal invasion of Ukraine, which forced the company to immediately decide to abandon the purchase and sale of products manufactured in Russia and Belarus, and by the rapid rise in energy prices, which was also one of the biggest unexpected events last year challenges of the year. Energy efficiency solutions made it possible to reduce the impact of high costs, however, in general, the company incurred losses of 429,000 euros. This is a significant improvement compared to 2021, when the company’s financial results were strongly affected by the Covid-19 pandemic.
“Like many companies, last year we were also significantly affected by the spread of Covid-19 and the restrictions set in the country, as well as the geopolitical situation, but in order to express a clear position and emphasize that Russia’s actions in Ukraine are not acceptable to us, we renounced Russia the very next day after the start of the war and marketing of products produced in Belarus. We also significantly felt the increase in the prices of energy resources and general inflation. Also, in the first quarter of 2022, strict restrictions of the Covid-19 pandemic remained, which significantly affected our operations and opportunities to make a profit. After the lifting of the restrictions, the flow of customers in “Narvesen” sales outlets and “Caffeine” cafes was restored, improving the financial results as well, and we plan that the profit obtained this year and in the future will allow us to cover the losses caused by other external circumstances as well,” SIA “Reitan” reveals the biggest challenges of the past year Convenience Latvia” board chairman Dace Dovidena.
In 2022, two new “Narvesen” sales outlets were opened, and work continued on improving the quality of sales outlets, improving the assortment and strengthening customer loyalty. New products have been developed in cooperation with Latvian producers, strengthening the place of “Narvesen” among the leading market players of Latvian coffee and snacks on the go. The network of “Caffeine” cafes also continued to expand in 2022, opening five new cafes in Riga, at the airport “Riga” and in Sigulda. Investments in both brands were directed not only to the expansion of the network and the development of IT infrastructure, but also to the implementation of a new sales concept, refreshing the facades and interiors of seven “Narvesen” sales points and two “Caffeine” cafes.
“Narvesen” is a retail franchise network with 25 years of experience and 210 sales points throughout Latvia. “Caffeine” is the leading chain of coffee bars in Latvia with more than 13 years of experience and 24 cafes in Latvia.
Both brands belong to the Norwegian company “Reitan Convenience”, which is represented in Northern European countries and the Baltics with such brands as “Narvesen”, “7-eleven”, “Caffeine”, “R-kiosk” and “Pressbyrån”, “UnoX” and “REMA 1000”.
