Retailers: Estonian Consumers Still Cautious
While grocery stores saw a shopping rush before the long Midsummer Day weekend, retailers are still not doing that well, because the prices are rising steadily and the buyers remain cautious.
Before Midsummer Day, buyers were crowding the grocery stores, whereas the retailers are faced with a completely different picture, reported ETV.
According to the data provided by Statistics Estonia, retail business has been on the upswing since February, but retailers still consider the Estonian consumer to be cautious.
"When we look at retail business in general, we can say that retail sales have increased, but most of that growth can be attributed to increased prices," said Director of Marketing and Communications for the PLC Prisma Peremarket Kadri Lainas.
According to Lainas, it is clear that people are considering quality as well as prices more carefully when shopping for food.
"However, when it comes to consumer goods, which are probably a marker for consumer confidence, we can see no significant change compared to last year," said Lainas.
Cautious buying is the result of increased prices. The cost of food is at an all-time high, and finally, the price tags are reflecting the impact of the tax hikes.
According to the manager of the Viru Keskus in Tallinn Ants Vasar, the 5 percent increase in visitor numbers this year indicates that buying activity is on the rise, with people starting to make the bigger purchases that they had postponed during the recession.
"Taking into account the fact that we are oriented more towards selling fashion goods - apparel, footwear, cosmetics, and beauty products - we saw sales growth for these goods for first time in April. Estonians are not yet rich enough to buy cheap goods on a whim; rather, they weigh the purchase carefully," said Vasar.
Retailers are not expecting a new consumer boom, but they do look forward to a recovery in domestic demand. At least, the Midsummer Day shopping rush helped to increase the turnover figures.
"It certainly seems like people are comparing different offers, but the meat will still be grilled and the bonfires lit," said Lainas.
Sigrid Maasen