bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Friday 21.11.2014 | Name days: Andis, Zeltīte
LatviaLatvia

Maxima still feels the impact of residents’ boycott

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThe Zolitude tragedy, which had a big impact on Maxima network and its relations with customers and employees, has left serious and long-term consequences for the company. One of the prime examples is the residents’ boycott of the supermarket – although limited in scale, the company’s sales are already below last year’s levels.

It should be added that Maxima was one of the most popular brands in Latvia prior to the tragedy. DDB advertisement agency’s compiled list of the 50 most popular brands in Latvia of 2012 included Maxima on the 7th place in terms of popularity. Experts cannot say the level of popularity Maxima had last year, Panorāma programme of LTV reports.

Shortly after the tragedy in Zolitude, there was a public call to boycott Maxima across the country. But even now it seems that this form of protest has lost its flame. Even though Maxima representatives say profits have slumped, interviewed customers say there is no point in such forms of protest.

Former Board member of Maxima Latvia Gintars Jasinski’s response to the question whether or not he should take responsibility for the tragedy in Zolitude had caused an explosion of public outcry. ‘What for? What for? Let those who feel responsible leave their posts. I know we did everything we could. We will not look for a scapegoat,’ – he told the media.

Customers forgave neither Jasinskis nor Maxima for this. This resulted in a boycott of Maxima stores. Last November’s profits dropped 20%. Last December, Maxima’s profits dropped by an additional 15%. Even though it has been nearly six months after the tragedy, Maxima still experiences consequences of the boycott. ‘We still feel the consequences. Our financial indexes show as much. If we compare our results with previous years, the decline of turnover remains within 5%. This trend has been present for the past three months. We will see what comes next,’ – says Maxima representative.

Advertisement specialists say this trend will not last a long time. Persons with low income will be the first to come back to Maxima. Customers interviewed by LTV also admit boycott is not the answer.

It is too soon to hope for any improvements, however. The fact that Maxima will have to work hard to restore its reputation is admitted by all sides. No change of brand or advertisements will help here. Maxima needs to take actual steps. There are some positive developments: the company has sorted out and redeveloped its supermarkets’ security measures, provided and continues to provide financial support to victims of the tragedy. Maxima also plans to improve work conditions for its employees.

Ref: 102.109.109.2211


Leave a reply

  1. michael walsh, journalist says:

    Not surprising really. Who can now walk into any of their stores without feeling the chill of the tomb.

    Thumb up 0 Thumb down 0

Ministries to change representatives at freeports of Ventspils and Riga

Latvian Environmental Protection and Regional Development Minister Kaspars Gerhards plans to replace the ministry’s representatives in the management boards of freeports in Ventspils and Riga.

Kaliningrad sprat producers may be forced to close down due to embargo

Kaliningrad canned fish producers may be forced to reduce sprat production volumes or even stop production altogether because of shortage of raw materials.

Lithuania maps out its entrepreneurialism

In a small county like Lithuania, the scope of entrepreneurialism varies tremendously from one region to another. The most people that do not fear business risks dwell in largest cities, but some of the otherwise agricultural and touristy regions in the hinterlands can also boast of a decent number of private business initiatives.

Snow comes unexpectedly to Latvia; drivers urged to be careful

This Friday, November 21st, Latvia was hit by unexpected snowfall. According to meteorologists, snowfall will continue throughout the entire day and night to Saturday. Thickness of the mantle of snow on the ground may reach 6-10 cm in some areas.

Another disciplinary case is launched against Strīķe

Another disciplinary case has been launched against Juta Strīķe, former deputy of Chief of Corruption Prevention and Combating Bureau Yaroslav Strelchenok, according to information from LETA.

SA: management of Latvian ports remains excessively politicized and unprofessional

Replacement of some members of Boards of freeports will not make their management more professional, effective and responsible, believes Latvian State Auditor Elita Krūmiņa. She calls for immediate changes to regulations that govern port management.

PHOTO: residents commemorate the first anniversary of Zolitude Tragedy

In commemoration of the first anniversary of Zolitude tragedy, which claimed the lives of 54 people, Latvia’s national flag will be raised on all apartment buildings, Riga City Council and its institutions with a mourning ribbon this Friday, November 21st.

UN: Close to thousand people killed in Ukraine since September 5 ceasefire

In the eight weeks that have passed since the truce agreed by Ukraine, Russia and separatists came into force, battles in Ukraine's east have claimed 957 lives.

SRS officers find 4.5 million contraband cigarettes in boiler unit

State Revenue Service’s Border Control officials found more than 4.5 million contraband cigarettes that were stashed in boiler units on board of a ferry that runs from Liapaja to Travemünde this month. The cigarettes, bearing Winston, Minsk and Fest brands with excise duty stamps from the Republic of Belarus, could have impacted the state budget by EUR 677,000.

Police may announce names of those responsible for Zolitude tragedy soon

The deformation of the building of Maxima supermarket in Zolitude began nearly two years ago. This is why State Police is currently investigating persons who could have potentially prevented the disaster.

One year passes since the tragedy in Zolitude

Friday, November 21st, marks one year since the tragedy in Zolitude. 54 people died under the collapsed roof of Maxima supermarket, including several rescuers.

Wynergy to sue Latvia and demand at least 51 million as compensation

Owner of Wynergy wind park company Indreks Kuivaliks has launched an international arbitration procedure against Latvia, asking no less than EUR 51 million as compensation.

Putin’s spokesperson discusses possibility of coup d'état in Latvia

During a discussion with BBC about the crisis in Ukraine and its impact on relations between the West and Moscow, Vladimir Putin’s Press-representative Dmitry Peskov discussed a theoretical possibility of a coup d'état in Latvia.

Lembergs family’s property value declines by 28 million

The Lembergs family remains the wealthiest in Latvia. The value of properties owned by Aivars, Anrijs and Liga has declined by EUR 28 million down to EUR 171 million in 2014.

Number of students enrolled in vocational education institutions up by 1.6% in Latvia

11.7 thousand students were enrolled in 62 vocational education institutions and 14 colleges implementing vocational education programmes in the 2014/2015 school year in Latvia. Compared to the previous academic year the number of enrolled students has increased by 1.6%. 46.5% of the students enrolled are women.

People living in Baltics are more concerned about poverty than violence

Residents of Latvia, Estonia and Lithuania are more afraid of poverty than violence. Only a little more than one-third of Baltic residents are afraid of getting mugged.

Owners of ABLV Bank remain at the top of Latvia’s list of millionaires

ABLV Bank owners Oleg Fils and Ernests Bernis remain at the top of Latvia’s list of wealthiest people for the third consecutive year.

Airport wire tapping case may be submitted for criminal prosecution soon

Security Police may submit the case on illegal wire tapping at Riga International Airport for launch of criminal prosecution by the end of November or no later than December 2014, as confirmed by multiple sources informed about the case.

Saeima selects parliamentary delegation representatives to international organizations

This Thursday, November 20th, the Saeima selected representatives to six international organizations.

NATO Secretary General: we are able to protect Baltic States

NATO is able to protect all of its member states, including Baltic States, said NATO Secretary General Jens Stoltenberg.

Latvian farmers prepare for protests in Brussels

European Commission’s decision to allocate EUR 7.7 million to Latvian dairy farmers as support due to the Russian embargo may cover only two months’ worth of losses to the industry. With that, farmer organizations plan to protest in Brussels, as noted by interviewed leaders of such organizations.

Nearly 2,300 people live in conditions of slavery in Latvia

Nearly 35.8 million people in the world live in conditions of slavery. In Latvia, however, this proportion is nearly 2,300 people, according to a modern global slavery index compiled from 167 countries.

Latvia’s population declines by 5,462 in 2014

In the first ten months of this year, 11 007 marriages were registered in Latvia, which is 9% more than in first ten months of 2013. 925 marriages were concluded in October 2014, which is 165 marriages more than in October 2013.

Latvia’s exports of goods are up and imports are down

In the first nine months of 2014, the volume of goods exported at current prices, as compared to the nine months of the previous year, increased by EUR 144.1 million or 2.0%, but volume of imports reduced by EUR 103.2 million or 1.1%.

Latvian teachers plan to protest and go on strikes

Latvian teachers are prepared to protest and go on strikes in order to demand wage rise, as announced by Chairwoman of Latvian Education and Science Trade Union Ingrida Mikisko after her meeting with Latvian Education and Science Minister Marite Seile.