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Fatima Shahid

Latvian Authority Highlights Coffee Price Disparities in Retail

20.02.2025 | Latvian competition authority

The Latvian competition authority has conducted a study revealing significant price differences for coffee across various retail chains, urging consumers to be vigilant in their purchasing decisions.


The Latvian competition authority recently undertook a proactive study on coffee prices in retail stores, revealing substantial price variations among different retail chains. This study, conducted in January 2025, included major retailers such as Rimi, Maxima, and Lidl, and highlighted the importance of consumer awareness regarding food prices.

The findings indicated that coffee prices not only differ between various stores but also within the same retail chain, particularly concerning promotional prices. Some promotional offers allow consumers to purchase coffee at nearly half the price compared to regular prices in other stores. This price disparity raises questions about the pricing strategies employed by retailers.

The authority noted that market leaders often exhibit similar regular prices for coffee, which may be attributed to real-time price monitoring among competitors. This dynamic can reduce competition intensity, as retailers adjust their prices in response to one another, particularly in popular product segments.

Several factors contribute to the observed price differences, including information asymmetry among consumers and the costs associated with searching for lower prices. Many consumers tend to shop at familiar stores rather than seeking the best deals, which diminishes price elasticity and allows retailers to set varied prices without immediate consumer migration to competitors.

Additionally, product differentiation and the overall value of the shopping basket play a role in consumer choices. Retailers may attract customers with a broader selection or loyalty programs, leading consumers to purchase coffee at higher prices in certain stores. Consumer habits and emotional choices also influence purchasing decisions, often resulting in habitual shopping patterns that overlook price comparisons.

To make informed purchasing decisions, consumers are encouraged to utilize various strategies, such as reviewing promotional materials, exploring online stores for price comparisons, and being aware of the true value of discounts. The authority emphasizes the importance of critical evaluation of prices across different retail outlets to foster a more competitive market environment.

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