Estonia, Markets and Companies, Retail

The increase in the turnover in the context of an economic crisis was mostly affected by the quickly expanding Selver chain, the sales revenue of which exceeded last year's results by a fifth.

"The most important message, when assessing the preliminary numbers on the first half of the year, is that the Kaubamaja group has not stood still, but is moving forward, despite the economic crisis," said the CEO of Tallinna Kaubamaja AS Raul Puusepp.

He added that the plans had to be adjusted to suit the terms, but these changes have not damaged the overall image significantly – the company will continue developing, allowing the group to achieve results that are better than the average market indicators.

Puusepp added that understandably, the consumers have started behaving more rationally, looking for more favourable prices and better offers and that applies a lot of pressure on retailers. "The structure of consumption, at the same time, has not changed much, on the basis of our experience," said Puusepp, explaining that sales of more expensive and better-quality products have declined by as much as those of cheaper goods, but due to greater discounts.

The turnover of Selver supermarket and hypermarket stores amounted to 2.35 billion kroons in the first half of the year – 21% more than during the same period of time last year. Selver's turnover per square metre of sales area amounted to 5,400 kroons per month in the first half of the year, falling by 23% in a year.

From January to end of June, a total of 16.9 million purchases were made in all Selver stores – 29% more than during the same time last year.

The turnover of Kaubamaja department stores amounted to 583.3 million kroons, falling by 20% in the year-on-year comparison. The decline in sales revenue of department stores of the Tallinna Kaubamaja group were in the first half of the year affected by renovation works in several departments while the sales revenue in the second quarter was affected by the period of discounts that was started earlier than usually.

The sales revenue of 34 footwear stores in the group amounted to 79.8 million kroons in the first half of the year.

The six-months sales revenue of the car dealerships' segment amounted to 147.7 million kroons. In six months, the group sold 761 new cars – 564 cars less than a year ago.

In March this year, the Tallinna Kaubamaja group opened the first store of the cosmetics products I.L.U in Pärnu. The turnover of the store in the first half of the year amounted to 2.5 million kroons.