Uncertainty in the economy likely to impact Christmas shopping this year
While citizens and residents of Estonia are becoming increasingly price sensitive given inflation, store managers predict that consumers will still hold up the pre-Christmas market, ETV news show "Aktuaalne kaamera" (AK) reported Monday.
Some seasonal products have even started appearing already, while Guido Pärnits, manager of the Ülemiste mall in Tallinn, told AK that: "Perhaps people will pick cheaper items, maybe one item will be bought instead of two, but I certainly think that things like Christmas, warm things like, will not be found wanting so far as money goes. So, if you say that if you want to buy Christmas gifts, maybe one lunch will have to be skipped between now and then," referring to possible ways of making savings.
With over two months still to go, some companies have started getting into Christmas mode, though their prices, too, are hardly unaffected by spiraling inflation.
Kaido Kaare, CEO of Orkla Estonia, whose brands include Kalev chocolate and Taffel snacks, told AK:"We strive to do [hike prices] as little as possible, but we also tend to pass on the prices of input raw materials into the products as much as possible, meaning our Christmas products have definitely become somewhat costlier."
That said, the reverse is the case when input prices of raw materials fall; this makes for instance gingerbread likely a more popular purchase than chocolate – in the latter case the high prices of cocoa and sugar will make their effects known.
Marilin Jürisson, purchasing manager at Rimi, meanwhile told AK that gifts being somewhat scantier this year can be forecast.
Kaido Kaare, CEO of Orkla Estonia, whose brands include Kalev told AK:"We strive to do [hike prices] as little as possible, but we also tend to pass on the prices of input raw materials into the products as much as possible, meaning our Christmas products have definitely become somewhat costlier."
That said, the reverse is the case when input prices of raw materials fall; this makes for instance gingerbread likely a more popular pirchase than chocolate – in the latter case the high prices of cocoa and sugar will make their effects known.
Marilin Jürisson, purchasing manager at Rimi, meanwhile told AK that gifts being somewhat scantier this year can be forecast.
Although Kalev has fewer Christmas options to offer this year, there are no concessions on the size and taste of the products, the company says, and it still intends to produce as much as 650 tonnes of confectionery for the festive season.
--
Follow ERR News on Facebook and Twitter and never miss an update!
Editor: Andrew Whyte, Merili Nael
Source: 'Aktuaalne kaamera,' reporter Iida-Mai Einmaa.
