The growth in retail sales accelerated in March

According to Statistics Estonia, in March 2013 compared to March of the previous year, the retail sales of goods of retail trade enterprises increased 7% at constant prices.

This January the retail sales increased 4% compared to the same month of the previous year and in February 2%. In March the annual growth in retail sales accelerated to some extent.

In March 2013, the retail sales of goods of retail trade enterprises were 366.1 million euros, which was almost 285 euros per inhabitant. The increase in sales was mostly influenced by grocery stores, where the retail sales increased 5% compared to March 2012. The growth in retail sales of these stores was influenced by the discount sales campaigns that took place in March, also by the lower reference base of the previous year and by the deceleration in the price increase of food products. If in February the annual price increase of food products was 6%, then in March 5.1%. Due to a large share, grocery stores covered half of the total increase of the sales of the retail trade enterprises.

The retail sales in stores selling manufactured goods increased 7% compared to March 2012. The retail sales of second-hand goods in stores and non-store retail sale (stalls, markets, direct sale) increased the most, where the retail sales increased more than half (73%) compared to March of the previous year. The sales increase in these stores does not significantly influence the retail sales of goods of retail trade enterprises, because the share of this economic activity is very small – 1.9% in March 2013.

The retail sales of automotive fuel increased 17% at constant prices compared to March 2012. Compared with previous months, the retail sales growth rate accelerated, mainly due to the low reference base of March 2012 and by the price decrease of automotive fuel. If in recent years the price of automotive fuel has increased rapidly, then in March this year the automotive fuel was 3.6% cheaper than a year earlier.

Compared to the previous month, in March the retail sales in retail trade enterprises increased 15% at constant prices. According to the seasonally and working-day adjusted data, the retail sales increased 3%. During the three months (January–March) of 2013, the retail sales in retail trade enterprises increased 4.6% at constant prices compared to the corresponding period of the previous year.

In March the turnover of retail trade enterprises was 437.5 million euros, out of which the retail sales of goods accounted for 84%. Compared to March 2012, the turnover increased by 2% at current prices. Compared to the previous month, this indicator increased 15%.

Source: Statistics Estonia (see a graph there)

Retail sales growth reflects improvement in consumer confidence

The growth in Estonian retail sales indicates a rise in consumer confidence and the weaker sales results at the beginning of the year might rather have been caused by the cold spring and high heating expenses, analysts believe.

The 7% increase in retail sales last month was the highest since September 2012, Swedbank analyst Tõnu Mertsina observed. Consumer confidence in general and in regard to personal financial situation has improved since last December, with a significant improvement recorded in March, Mertsina pointed out. “With the end of the heating period, the impact of higher electricity prices will decrease, which ought to leave consumers room for other outlays,” he said.

Slowdown of inflation together with the acceleration of real wage rise will also have a positive effect on consumption growth, he added.

Retail sales of goods by retail trade enterprises grew 7% at constant prices in March compared to the same month of the previous year, Statistics Estonia said on Tuesday. In January retail sales increased by 4% and in February by 2% year on year. The annual growth accelerated somewhat in March.

Source: Estonian Review

83 pct of retailers plan to boost volumes in 2013

Of retail enterprises in Estonia, 83% are planning to increase volumes this year, and of the latter 57% are eyeing growth of more than 5%, a survey by Swedbank indicates. Swedbank predicts an increase of 3-5% in volume terms and 6-10% in terms of sales for the retail sector for this year, Robert Kitt, managing director of Swedbank’s corporate banking, said at a presentation of the survey on Monday.

Even though the turnover of retail and wholesale climbed to an all-time high of 15.8 billion euros last year, the increase in value added in retail and wholesale has been relatively stable in the past four years. The share of retail and wholesale in the value added of the gross domestic product (GDP) remains low.

Of the retailers and wholesalers surveyed, 83% are planning to increase volumes in 2013 and of the latter 57% are planning to increase them by more than 5%, the survey reveals. To achieve greater volumes, 79% are planning to invest in marketing, 77% to expand product range and 72% to expand the sales network.

This year the biggest developments are due in the market of mid-sized retailers, where several important new players such as H&M, Debenhams and Next are due to make their entry in Estonia in 2013.

Of the mid-sized sellers of specialized goods all are planning to boost volumes this year. Of such retailers 94% are planning to invest in marketing. Acquisitions are planned by 29% of mid-sized sellers of specialised goods.

In the Swedbank survey, 117 companies of different size took part, including 32 sellers of staple goods and 85 sellers of specialised goods.

Source: Estonian Review

The growth in retail sales decelerated in February

According to Statistics Estonia, in February 2013 compared to February of the previous year, the retail sales of goods of retail trade enterprises increased 2% at constant prices.

In the last three months of 2012, the retail sales increased steadily 4–5% compared to the same month of the previous year. This January the stable 4% growth continued, but in February the growth decelerated.

In February 2013, the retail sales of goods of retail trade enterprises were 317.9 million euros, which was 247 euros per inhabitant. The retail sales in stores selling manufactured goods increased 8% compared to February 2012. The sales increased in all economic activities. The retail sales of second-hand goods in stores and non-store retail sale (stalls, markets, direct sale) increased the most, where the retail sales increased more than half (64%) compared to February of the previous year. The sales increase in these stores does not significantly influence the retail sales of goods of retail trade enterprises, because the share of this economic activity is very small – 1.9% in February 2013. In February, a higher than average increase in retail sales occurred in the stores selling household goods and appliances, hardware and building materials (growth 11%), retail sales via mail order or the Internet (growth 8%), in stores selling pharmaceutical goods and cosmetics (growth 6%), in other specialized stores, such as stores selling computers and their accessories, photography supplies, books, sports equipment, games and toys, etc. (growth 5%) and in stores selling textiles, clothing and footwear (growth 4%).

The retail sales in grocery stores which slightly decelerated in January turned into fall in February and decreased 2% compared to the same month of the previous year. The growth in retail sales of these stores was influenced by the high reference base of February 2012 and acceleration in the price increase of food products. If in February 2012 the annual price increase of food products was 2.9%, then in February this year 6%.

Compared to the previous month, in February the retail sales in retail trade enterprises decreased 7% at constant prices. According to the seasonally and working-day adjusted data the retail sales decreased by 2%.

In February the revenues from sales of retail trade enterprises were 381 million euros, out of which the retail sales of goods accounted for 83%. Compared to February 2012, the revenues from sales decreased by 2% at current prices. Compared to the previous month, this indicator decreased 6%.

Read more from Statistics Estonia

Battle between fashion retailers heats up

In recent years, the Estonian market has seen the arrival of several so-called fast fashion retailers that have become very successful and taken market share away from established brands, writes Äripäev.

One of such retailers is Polish listed company LPP S.A. that in Estonia operates through its subsidiary LPP Retail Estonia and last year saw retail sales go up 18%. The company’s profit amounted to almost EUR 1.5m.

Commenting the company’s results, board member Hendrik Ilja Pass said that one reason behind the success was the launch of its new retail brand Mohito. The company’s other retail brands are Reserved, Cropptown and House.

Read more from BBN

Estonian food wholesaler charged of bribery

Two executives of AS Haljas, one of Estonia’s oldest food wholesalers, have been charged for attempt to bribe the purchasing manager of an unnamed large grocery chain, writes Postimees.

According to the charges, Bruno Pärn, a management board member of Haljas, and the company’s purchasing and sale manager Marina Piperal, proposed at a meeting with the purchasing manager of a large grocery chain that they would pay the manager every month a certain amount on sale of products supplied by Haljas.

More specifically, they offered to pay the chain’s purchasing manager between 0.5 and 1 eurocent per unit sold.

Read more from BBN

Retail sales increased by fifth on Christmas month

According to Statistics Estonia, in December 2012 compared to December of the previous year, the retail sales of goods of retail trade enterprises increased 5% at constant prices. In 2012 compared to 2011, the retail sales increased 7%.

In December 2012, the retail sales of goods of retail trade enterprises were 429.2 million euros. The retail sales in stores selling manufactured goods increased 5% compared to December 2011. The sales increased in four and decreased in three economic activities. The retail sales of other specialized stores, such as stores selling computers and their accessories, photography supplies, books, sports equipment, games and toys, etc., and the retail sales of pharmaceutical goods and cosmetics increased the most. Compared to December 2011, the retail sales in these stores increased 13% in both. The retail sales increased also in non-specialized stores selling predominantly industrial goods (9% growth) and in stores selling textiles, clothing and footwear (7% growth). The retail sales of second-hand goods in stores, the retail sales of household goods and appliances, hardware and building materials and the retail sales via mail order or the Internet decreased compared to December 2011.

The retail sales in grocery stores increased 3% compared to December 2011. The modest growth in retail sales of these stores was influenced by the very high reference base of December 2011.

The retail sales of automotive fuel increased 13% at constant prices compared to December 2011. Compared with previous months, the retail sales growth rate slightly accelerated, mainly due to the low reference base of December 2011 and by the deceleration in the price increase of fuel.

In December compared to November 2012, the retail sales in retail trade enterprises increased by a fifth at constant prices. This is a usual rise in December, when Christmas marketing takes place. According to the seasonally and working-day adjusted data, the retail sales increased 2%.

In December the revenues from sales of retail trade enterprises were 525 million euros, out of which the retail sales of goods accounted for 82%. Compared to December 2011, the revenues from sales increased by 10% at current prices. Compared to the previous month, this indicator increased 18%.

According to preliminary data the retail sales of retail trade enterprises were almost 4.4 billion euros in 2012, compared to 2011 the retail sales increased 7% at constant prices.

Source: Statistics Estonia

Retail sales grew 7 pct in 2012

Retail sales of goods by Estonian retail trade enterprises totalled 4.4 billion euros at constant prices in 2012, an increase of 7% over the preceding year, Statistics Estonia said.

In December 2012, retail sales of goods by retail trade enterprises totalled 429.2 million euros. Retail sales by stores selling manufactured goods increased 5% compared to December 2011. Sales increased in four and decreased in three economic activities. Retail sales by other specialised stores, such as stores selling computers and accessories, photography supplies, books, sports equipment, games and toys, etc., and retail sales of pharmaceutical goods and cosmetics increased the most.

The sales revenues of retail trade enterprises totalled 525
million euros in December, of which retail sales of goods accounted for 82%. Compared to December 2011, sales revenues increased by 10% measured in current prices. Month on month, the indicator increased 18%.

Retail sales by grocery stores increased 3% compared to December 2011. The modest growth in grocery retail volumes was partially a result of the very high reference base from December 2011. The retail sales of motor fuel increased 13% measured in constant prices compared to December 2011. Compared with the preceding months the rate of growth in retail sales slightly accelerated mainly due to the low reference base of December 2011 and a deceleration in the price increase for fuel.

Compared to November 2012, retail sales by retail trade enterprises increased by a fifth at constant prices, a usual phenomenon for December when Christmas goods are bought. According to seasonally and working-day adjusted data, retail sales increased 2%.

Source: Estonian Review

Prices in November

According to Statistics Estonia, the change of the consumer price index was -0.3% in November 2012 compared to October and 3.6% compared to November of the previous year.

Goods were 3.4% and services 4.1% more expensive compared to November 2011.

Regulated prices of goods and services have risen by 6.5% and non-regulated prices by 2.7% compared to November of the previous year.

Compared to the same month of the previous year, the consumer price index was mainly influenced by food which gave almost 40% of the total increase. Of which in turn over a third gave 9.4% more expensive meat and meat products, and another third respectively 17% and 13% more expensive fruit and vegetables. Housing expenditures gave over 30% of the total increase, of which in turn over 80% gave 8.4% more expensive electricity, heat energy and fuel. 4.9% more expensive motor fuel gave less than a seventh of the total increase. Compared to November of the previous year, of food products, the prices of eggs have increased the most (42%) and the prices of groats have decreased the most (7%). The plane tickets were 37% more expensive than a year earlier.

In November compared to October, the consumer price index was mainly influenced by the price decrease of petrol and plane tickets. During the month, the prices of plane tickets decreased the most (25%) and the price of paprika increased the most (31%).

October 2012 – November 2012, %

Commodity group	November 2011 – November 2012, %	October 2012 – November 2012, %
TOTAL	3.6	-0.3
Food and non-alcoholic beverages	5.8	0.1
Alcoholic beverages and tobacco	4.9	-0.1
Clothing and footwear	6.4	1.2
Housing	6.7	-0.2
Household goods	1.6	0.3
Health	-0.7	0.7
Transport	1.6	-2.6
Communications	-5.8	-0.1
Recreation and culture	1.5	-0.4
Education	5.5	0.0
Hotels. cafés and restaurants	4.1	0.1
Miscellaneous goods and services	1.5	0.4

 

Source: Statistics Estonia

October prices

According to Statistics Estonia, the change of the consumer price index was 0.2% in October 2012 compared to September and 4.1% compared to October of the previous year.

Goods were 3.9% and services 4.5% more expensive compared to October 2011.

Regulated prices of goods and services have risen by 7.4% and non-regulated prices by 2.9% compared to October of the previous year.

Compared to October of the previous year, the consumer price index was the most influenced by food which gave over a third of the total increase. Of which in turn a third gave 9.5% more expensive meat and meat products, nearly a quarter fresh fruit and another quarter fresh vegetables. Housing expenditures gave about 30% of the total increase, of which 12.1% more expensive heat energy accounted for over a half compared to October of the previous year. 8.8% more expensive motor fuel gave less than an eighth of the total increase. Compared to October of the previous year, of food products, the prices of fresh vegetables have increased the most (35%) and the prices of groats have decreased the most (11%). The plane tickets were 60% more expensive than in October of the previous year.

In October compared to September, the consumer price index was mainly influenced by the price increase of food caused by more expensive meat and meat products and fresh vegetables, as well as 1.8% price decrease of motor fuel and price increase of plane tickets. The prices of fresh cucumbers increased the most (60%) and the prices of potatoes decreased the most (12%).

September 2012 – October 2012, %

Commodity group	October 2011 –October 2012, %	September 2012 –October 2012, %
TOTAL	4.1	0.2
Food and non-alcoholic beverages	6.3	0.7
Alcoholic beverages and tobacco	5.2	-0.1
Clothing and footwear	5.7	1.4
Housing	6.9	-0.1
Household goods	2.0	0.4
Health	-1.6	-0.2
Transport	4.1	0.0
Communications	-5.5	-0.1
Recreation and culture	0.8	0.1
Education	5.7	0.1
Hotels, cafés and restaurants	4.2	-1.5
Miscellaneous goods and services	1.6	0.2

Source: Statistics Estonia