EU – Baltic States, Lithuania, Markets and Companies, Retail

Rimi has revealed that it is to end operations at 24 unprofitable stores in Lithuania following a fall in sales during the first six months of 2010, a trend seen across much of the Baltic States, informs LETA/ELTA.

On the other hand, no "Rimi" stores are to be closed in Latvia. On the contrary, new "Rimi" stores will open in Sigulda and Ikskile, said Rimi Lavia marketing and public relations manager Zane Enina.

The move means that Rimi loses over a third of its store portfolio in the country, although the group's parent company, Swedish retailer Ahold ICA, noted that the decline in sales slowed down through the second quarter of the year.

ICA reported on a drop in net sales of 1.6% for the first half of the year across its Scandinavian store range to 4.8 billion euros, with operating income coming in at 180 million euros (up 40%) and net income amounting to 5.8 million euros, a drop of 88% on 2009.

President and chief executive officer Kenneth Bengtsson noted that Sweden, Norway and the Baltics had seen falling sales due to a "generally weak food retail market and an increasingly promotional competitive environment".