Sales grow ahead of Midsummer, but shoppers prefer discounts

Estonian retail chains are registering sales growth ahead of Midsummer celebrations, but consumer behaviour has shifted: discounted goods are increasingly popular. According to the head of Rimi Estonia, promotional goods now account for nearly half of shopping baskets, whereas previously this figure was around a quarter.

Estonian retail chains are experiencing the usual sales surge ahead of Midsummer, but economically challenging times have left their mark on consumer behaviour. Shoppers are watching prices more carefully than ever and prefer discounted goods.

Share of discounted goods grows

Kristel Mets, head of Rimi Estonia, acknowledged that whereas promotional products previously made up about a quarter of shopping baskets, that share is now approaching half. "Compared to last year, the share of discounted goods has grown significantly, both in the form of traditional yellow-label promotions and products participating in our everyday good price programme. Today's consumer is very well informed, chooses products carefully and actively uses promotional offers," Mets said.

Oliver Rist, purchasing director at Coop Estonia, also confirmed that consumer confidence remains low. "Above all, people look to see whether their favourite product is on promotion with a yellow price tag. If it isn't, they're willing to try something new if it's discounted. This has been a consistent trend for three to four years," Rist explained.

Sales grow like before Christmas

Retail chains compare the pre-Midsummer period to the Christmas season: despite the economic situation, sales still grow. According to Coop, sales in certain product categories rise by up to a quarter or even a third.

"In addition to traditional seasonal products like watermelons and sweet cherries, sales of various drinks, including alcohol-free beverages, are doing well. Naturally, demand increases for everything needed for grilling: sausages, grilling supplies, disposable tableware and so on," Rist noted.

Alcohol sales decline

Interestingly, both chains have observed a continued decline in alcohol sales even during the holiday period. Kristel Mets explained that the market is seeing an increasing number of alcohol-free alternatives to both light and strong alcoholic beverages. "These products show steady growth. Sales of alcoholic drinks are gradually declining and being replaced by alternative alcohol-free products," Mets added.