On 13 April, the Competition Council of Latvia (the CC) adopted a decision to allow SIA “EfTEN Domina” to grant to SIA “MAXIMA Latvija” (MAXIMA) the right to use retail sales premises at the shopping centre “DOMINA Shopping” in Riga, Ieriķu Street 3.
By assessing the existing conditions, the CC concluded, that the market share of MAXIMA will not increase significantly as a result of the transaction, and the company will only commence its operation in the segment of multifunctional shopping centres, so the market concentration will not increase within the segment. In addition, this transaction may intensify competition among all retailers of daily consumption goods, which operate in this segment.
During the merger case investigation, the CC determined daily consumption goods retail sales stores with trading space area exceeding 600 m2 and which can ensure at least 6,000 assortment units per month as the market affected by the transaction. A 13 minutes driving distance (isochrone) around “DOMINA Shopping” was determined as the relevant geographical market.
62 daily consumption goods retail sales stores were included for determination of market shares in the relevant market (13 minutes driving distance), among them also stores that are located in multi-functional shopping centres.
Multifunctional shopping centres are one of the main factors, which influence competitiveness of the relevant store. Obtaining and retaining strategically important locations becomes increasingly more important, taking into consideration, that the number of such locations in the market is limited.
It has to be indicated, that currently SIA “RIMI LATVIA” is the leading market participant in the segment of shopping centres, having its stores in seven shopping centres out of ten (“Mols”, “Origo”, “Alfa”, “Dole”, “Galerija Centrs”, “Galleria Riga” and “Atrium Azur”) in the affected market.