Gerkens&Co co-owner Raimonds Gerkens

Although «we are no more falling into the pit as fast as before,» Latvia has not yet fully recovered from the crisis, believes the Latvian business initiator, Gerkens&Co co-owner Raimonds Gerkens.

If small shops, services sector and crafts are considered the national business, there is future ahead, however large scale wholesale will never be the national Latvian business, indicates the wholesaler Gerkens.

Currently there are 40 Gerkens&Co shops left in Latvia, as the businessman has had to close down the one on Brivibas Street in Riga, reports the newspaper Neatkarīgā Rīta Avīze.

The businessman does not see any positive tendencies at the moment, «I judge from the amounts bought, the purchasing capacity and so on – I feel what is happening in the market as I have many shops throughout the entire Latvia. The customer has changed. Before they did not care what they were wearing as long as it was shiny and with a foreign brand,» Gerkens evaluates the situation.

«It is psychologically difficult for people to switch from the «fat years» to the «lean years». I have cut my employees salaries, as well as, fired some of them. There were times when 500 people worked for Gerkens&Co, the current number is about 200. I have not closed down many shops, though. I am closing the one on Brivibas Street in order I would not compete with myself as my shop in Bērnu pasaule (Children’s world) is very near. I particularly liked this shop due to its interior,» states the wholesaler, adding that his shops will suffer losses this year as well.

«Customers consume less: shoes which one wore for a season are now worn for two or three. However people have this consumerism syndrome: they like shopping, at different levels, though. One shops in Harrods, while the other in Milan and Paris, the third – in Gerkens&Co. Desires are the same, only opportunities differ,» says Gerkens.