Shoppers in Estonia increasingly split purchases among multiple stores

Grocery stores are built primarily in areas with sufficient population and purchasing power, which is why major retail chains are concentrated mainly in Tallinn, Tartu and Pärnu, Rimi Eesti CEO Kristel Mets says.
Unlike many Western European countries, Estonia's grocery retail sector is highly dominated by chain stores, while independent neighborhood shops and small corner stores are relatively rare, Mets noted in a Postimees interview.
Because competing grocery chains are often located close to one another, consumer brand loyalty is low and shoppers typically alternate among three to four different stores.
More than half of grocery store revenue now comes from products sold at promotional prices. Retail sales volumes are not growing this year, and any increase in turnover is driven solely by inflation and higher value-added tax.
Grossi and Meie chains are also expanding their presence in the grocery market by opening new and significantly larger stores in small towns and residential neighborhoods.

"Grossi has decided, essentially, that it will no longer build those smaller stores, but instead stores with 1,600 square meters of retail space. A 1,600-square-meter store is a very large supermarket, almost hypermarket-sized by Estonian standards," Mets said.
Online grocery shopping and home delivery volumes are growing rapidly, and the service is increasingly used to order groceries remotely for elderly parents or grandparents.
To combat theft, Rimi has launched a pilot project installing security gates at self-checkout exits that open only when customers scan their receipts.
Full story in Postimees.
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Editor: Argo Ideon
Source: Postimees











