Narvesen breathes life into magazine industry

  • 2005-09-14
  • By Elizabeth Celms
RIGA - Narvesen Baltija has changed the face of Latvian newsstands. Once sold from behind grubby kiosk windows, magazines in Latvia have become thicker, glossier, and all the more exotic, covering topics ranging from French manicures to auto mechanics.


Of course, these changes were long expected - since the words Europe and Latvia first rolled off Baltic tongues in one breath. But it wasn't until Narvesen first lit up Riga's streets with its neon glow that the magazine stand took on a life of its own.

For years now, Narvesen Baltija has been the largest press-retail chain in Latvia, with 426 newsstands across the nation. In 2004, the company increased sales by 10 percent to almost 40 million lats (49.7 million euros), earning 372,000 lats in profit before taxes, finance director Girts Didrihsons, told the Baltic News Service.

"After accession to the EU, the value added tax for periodicals was cut from 9 percent to 5 percent, which allowed us to boost revenues," Didrihsons explained.

Over the last three years, the company's investment has grown to 7.4 million lats. This year Narvesen plans to invest at least 500,000 lats in opening 20 new shops and reconstructing 20 old ones.

"We want our sales to increase at a more rapid rate than inflation," said Narvesen board chairwoman Katrina Judovica.

Since joining the EU, Latvia's inflation rate has become the highest of all bloc members.

The first Narvesen was opened in December 1997. Four years later, the Scandinavian-owned company took over the press retail trader Preses Apvieniba.

Today Narvesen sells more than 1,200 local and international publications in Latvia. It's best-selling newsstand, located on the corner of K.Barona and Dzirnavu Streets is the biggest store in the Baltics.

"That store alone sells about 1,000 different titles," Judovica told The Baltic Times. "Local magazines and newspapers are the best-sellers."

As for industry trends, holiday and entertainment publications - such as boating, hunting and fishing magazines - are becoming more popular. Monthly beauty magazines are also a top-seller, said Judovica.

As Latvia's standard of living steadily increases, residents finally have the pocket change to splurge on luxuries such as fashion or architecture magazines, which run anywhere from 2 to 4 lats.

According to Latvia's press-service Web site, the most popular selling daily papers are Diena, Vesti Segodna (a Russian publication) and Vakara Zinas, respectively.

The top three weekly magazines are Privata Dzive (Private Life), Ieva 's a women's homemaking magazine - and Rigas Vilni (Riga Waves). All of these magazines, as well as best-selling monthly publications 's Cosmopolitan Latvia, Ievas Stasti (Ieva's Stories) and FHM Latvia 's are nationally published.