Food sales volumes are still lower than they were a year ago, for instance.

Publicly traded company TKM Grupp reported a €6.5 million loss in the first quarter, which is four times greater than the same period last year. However, the company's CEO, Raul Puusepp, says some positive signs are emerging.

He said: "Perhaps we have passed the bottom. The rise definitely won't be fast, but gradually people are getting more confident in making purchases, and previously postponed buying decisions are starting to be realized, with more willingness to consume."

Customers have become bolder in making purchasing decisions, though with bigger purchases caution still reigns, he added.

"Things may be better in terms of everyday goods. The supermarket segments have turned to slight growth. Customers are still cautious when it comes to bigger purchases. If we are talking about the car market or durable goods, people are still cautious there," said Puusepp.

A spokesperson for retail chain Prisma was less optimistic, noting that while there has been a recent rise in turnover, this has been driven by price hikes, while sales volumes remain below last year's levels.
Kaimo Niitaru, director of procurement and product selection at Prisma Peremarket, said: "Volumes are still slightly in the negative compared with last year. This especially reflects those product groups where significant price rises have happened — coffee, chocolates, sweets — where we are seeing double-digit percentage drops in sales volume."

Lenno Uusküla, chief economist at Luminor Pank, also said while there has been stabilization in retail, no real growth is visible yet.

"There are those areas where we see greater growth and others where the decline is ongoing. Second-hand stores and fuel sellers are doing well, but stores primarily selling food are struggling. Maybe people are buying fewer household goods there, maybe consumption habits have changed — more ready-made food is being purchased," Uusküla said.

Uusküla pointed out that last year's pre-car tax shopping boom has also played a role in current retail conditions. People simply spent their money then, followed by a period of reigning in purses.

The car tax entered into effect at the start of this year.

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