Continuing to invest in business development, Narvesen managed to reach 90% of its turnover in 2019 last year – Market News

In 2020, SIA Narvesen Baltija, the company that manages the leading retail franchise network Narvesen and Caffeine cafe chain, had a turnover of 61 million euros, which is 10% less than a year earlier, and a loss of 2.4 million euros. At the same time, despite the impact of the Covid-19 pandemic, more than € 1.3 million has been invested in network and infrastructure development.

The past year has been full of challenges for Narvesen, both in terms of limiting the maximum number of visitors to retail space and banning the provision of catering services on retail space, and in terms of a significant reduction in the flow of inbound and outbound tourists. All these circumstances significantly reduced the company’s ability to work fully, therefore, compared to 2019, when we operated under normal conditions, there is also a decrease in turnover and profit. Our priority at the beginning of the pandemic was to provide safe working conditions for franchisees and employees and safe shopping for our customers, as customers are always our top priority. That’s why we worked hard to make our customers feel that Narvesen and Caffeine are by their side and available even in difficult times, not only when everything is great. The pandemic has not diminished our confidence in the business growth potential, as a result of which we invested 1.3 million euros in the development of the Narvesen and Caffeine sales network in 2020, ”says Dace Dovidena, Chairman of the Board of SIA Narvesen Baltija.

5 new outlets and a new sales channel were opened in 2020 – Narvesen and Caffeine products can be purchased online using BoltFood delivery services.

“We are constantly investing in business development, and last year the investments were directed not only to the expansion of the network and the development of IT infrastructure, but also to the implementation of a new store concept, refreshing the facades and interiors of the store,” comments Dace Dovidena.

In cooperation with Latvian producers, new products have been developed, strengthening Narvesen’s position among the leading participants in the Latvian coffee and fast food market. Private brand Fresh & Tasty In 2020, it accounted for 87% of the turnover of food along the way. Work has also continued on improving the quality of sales outlets, improving the assortment and strengthening customer loyalty.

In January 2020, one of the largest transactions of Narvesen in recent years was registered, when Narvesen’s parent company Reitan Convenience acquired SIA Coffee Inn owned by UAB Keturi Rooms under the Caffeine brand. With the reorganization, SIA Narvesen Baltija took over all the assets and liabilities of SIA Coffee Inn, but maintained the strong Caffeine brand.

“We look to the future with optimism, expecting a resumption of customer flow, planning the introduction of new offers for our customers and the opening of new sales outlets and concepts. In order to reduce the impact of Covid-19 on the company, we have adapted our operations to the current circumstances, evaluating the performance of sales outlets depending on customer flows, adjusting working hours and reviewing administrative work processes and costs, ”explains Dace Dovidena.

Narvesen is a leading retail franchise network with 24 years of experience and 216 outlets throughout Latvia, providing jobs for more than 800 people. SIA “Narvesen Baltija” was registered in 1997. The share capital of the company is 10,592,672 euros. The company is owned by the Norwegian company Reitan, which is represented in the Nordic and Baltic countries by brands such as Narvesen, 7-eleven, Caffeine, R-kiosk and Pressbyrån, UnoX and REMA 1000. .

“Narvesen”

–