An increase in excise duties on alcoholic beverages and tobacco products will pose serious challenges for retailers, said Raimonds Okmanis, Chairman of the Board of SIA Latvijas tirgotāju savienība, which manages the LaTS retail chain.
He noted that this risk is already evident from last year’s experience with higher tobacco excise duties, as well as from suppliers’ reports indicating a rise in the circulation of illegal tobacco products. At the same time, higher tax rates could also create conditions for further growth in illegal alcohol trade. These trends mean that part of the revenue may fail to reach both retail businesses and the state budget.
According to Okmanis, the retail sector could see consolidation in 2026, with some stores ceasing operations, while those that choose to continue will focus on development and expansion.
He also expressed hope that the government will refrain this year from poorly considered decisions that require retailers to make significant financial and time investments without delivering meaningful benefits, as was the case last year. Okmanis explained that some small regional shops may have decided to close precisely because of rapidly changing regulatory requirements.
In many cases, the owners of small shops are elderly people who find it difficult to keep up with frequent regulatory changes
that also require additional financial resources. In the best-case scenario, such shops will be taken over by entrepreneurs willing to develop them further, leading to consolidation within the retail network, Okmanis said.
He added that the principle of “shops following people” will also apply this year, meaning that stores may close in areas that have become sparsely populated, while new outlets may open in locations where demand has increased.
Okmanis also pointed out that retailers choosing to grow will increasingly make use of currently available technological solutions.
As previously reported, Latvijas tirgotāju savienība recorded a turnover of €12.07 million in 2024, down 1.7% year-on-year, while the company’s profit decreased by 4.5% to €1.084 million.
The company was registered in 2007 and has a share capital of €2,845. Its shareholders are Raimonds Okmanis (42.99%), Inga Tunste (39.02%), Agita Vanaģele (10.02%), Ēriks Pīlādzis (2%), Velga Kalniņa (2%), Rauls Baumanis (2%), Arnolds Taukulis (0.98%), and Jeļena Okmane (0.98%).
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