Of retail enterprises in Estonia 83 percent are planning to increase volumes this year, and of the latter 57 percent are eyeing growth of more than 5 percent, a survey by Swedbank indicates.
Survey: 83 pct of Estonian retailers planning to boost volumes in 2013
Swedbank predicts an increase of 3-5 percent in volume terms and 6-10 percent 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 percent are planning to increase volumes in 2013 and of the latter 57 percent are planning to increase them by more than 5 percent, the survey reveals.
To achieve greater volumes, 79 percent are planning to invest in marketing, 77 percent to expand product range and 72 to expand the sales network.
While retailers and wholesalers are seeing expansion as one option, we won't probably see expansion "at any price," said Kitt. One's mainly looking around in Tallinn with new venues in mind, with rental costs and the location of the site playing an important role.
The interesting aspect revealed by the survey is that one's not planning on engaging in e-commerce in Estonia. Of sellers of specialized goods 5 percent are planning to engage in e-commerce, compared with no one among sellers of staple goods. Arising from that the turnover of e-commerce is low in Estonia.
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 percent are planning to invest in marketing.
Acquisitions are planned by 29 percent of mid-sized sellers of specialized goods.
In the Swedbank survey 117 companies of different size took part, including 32 sellers of staple goods and 85 sellers of specialized goods.