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According to two unrelated state-owned companies, Lithuania’s real estate market (RE) is being explored by a large new investor working in the retail sector.
According to vz.lt, this player hopes to enter aggressively and quickly, but any information related to Aldi’s development plans is completely confidential.
Asked if Norfa would be sold.
Dainius Dundulis, owner of the Lithuanian retail chain Norfos mažmena 15 minutes Aldi claimed that Aldi retailers had contacted him a few months ago.
Personal bow. photo / Dainius Dundulis
“He had communication. Ask how we are doing. What did you ask? Would we consider selling? ”Revealed D. Dundulis, adding that it was more of a query than a specific offer.
The businessman claimed that his answer at the time was “not yet.”
“We always have those thoughts (about sales, 15 minutes), but this is not the time ”, he assured.
When asked if it is real that “Aldi” can come to Lithuania, D. Dundulis replied that “it may be real, but I cannot say for another”.
In the meantime, if a new player really did arrive, D. Dundulis believes that some fundamental changes would not occur.
“It is better to remember what happened when the last player arrived, what happened when others arrived before. At the time of arrival, there are really no significant changes, I can only joke that “cauliflower prices have dropped a lot,” said D. Dundulis.
In Lithuania in 2016, the expensive cauliflower scandal disappointed on social media. Then-Prime Minister Algirdas Butkevičius had hinted that this was possibly related to Lidl’s arrival.
According to D. Dundulis, there is always a place in the market for new players, but when many companies reach a small market, some players may start working at a loss.
Expert: Aldi enters other markets after Lidl
The retail expert Justas Gavėnas 15 minutes He said the event itself is not unexpected for him, as Aldi often enters other markets after Lidl. However, he is surprised that the decision is quite late.
Sigismund Gedvila / 15min photo / Justas Gavėnas
Another German retailer, Lidl, opened its first store in Lithuania in June 2016.
“This shows that the market has been sufficiently researched and that it is not entirely certain whether the solution will work,” he said.
J. Gavėnas did not assess the impact that Aldi’s arrival in Lithuania could have. This will depend on the format and strategy chosen by the retailer.
“There is not enough room to push each other and there are many free niches. You have to wait and see what strategy will be chosen. I see more potential for small express stores, even in the center. Probably a very good example of Japanese.” 7 -Eleven “, where there are small shops almost every hundred meters, where you can get the main products.” 15 minutes said the interlocutor.
According to J. Gavėnas, Aldi is a slightly cheaper and simpler retail chain than Lidl.
LIDL nuotr./ “Lidl”
What difficulties could a German retailer face?
According to a trade expert, this will depend on the cities in which they choose to pursue development. However, in Vilnius, J. Gavėnas does not even doubt that one of the difficulties will be the new General Plan, which should be approved this year.
“There are more restrictions on the intensity of construction in the settlements. But it will depend on whether it will go more to the regions or to the cities, if it will be a store at the entrances to the cities. But I don’t think it’s easy to enter like that. “The Lidl example shows that it was only the third time that the market was successfully understood,” he said.
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