Closure of "Mere" may make groceries 5–10% pricier for bargain hunters
The head of Latvia's merchants association predicts that shoppers who relied on "Mere" for low prices may see those products become 5–10% more expensive. The discount chain closed its Latvian stores after EU sanctions on its ultimate beneficiary.
Henrik Danusevics, head of the Latvian Merchants Association, said on the program "Spried ar Delfi" that people who used to shop at the "Mere" discount network could face higher prices. In his view, products that these customers previously bought at rock-bottom prices may now cost 5–10% more.
"Mere" has closed all its stores in Latvia. The move followed the European Union's decision to impose sanctions on the company's ultimate beneficial owner, Sergejs Šnaiders. This means a low-price retailer that served a certain group of customers has disappeared from the Latvian market.
Danusevics predicts that "Mere"'s customers, who sought the lowest possible prices, will need to switch to other stores, where the same items are likely to be slightly more expensive. He estimates the increase could be in the range of 5–10%.
It is still difficult to say exactly how the chain's departure will affect competition in retail. However, merchants are already warning about a possible rise in prices, which could especially affect households with lower incomes. Although the increase is modest, it may be noticeable for these groups.
