Retail sales finish a strong year with 5% growth in Q4 2014

Retail sales in Estonia continued solid growth in the final quarter of 2014, achieving 5% YoY growth for period. Both the household goods and fashion segments showed growth rates significantly above the average for the quarter, with 8% and 10% YoY growth respectively.

2014 in total achieved retail sales growth of 6%, with clothing and footwear segment showing the highest growth among the larger retail segments with 19% increase for the full year. The market entry of H&M, which has opened 6 stores in Estonia since September 2013, has been the largest growth driver for the fashion segment, as the long awaited affordable fashion offering has captured the spending power of Estonian customers. The slowing retail growth in the fashion segment closely reflects the slowing speed of expansion of H&M stores in Estonia, with less growth support from fewer store openings, while the existing stores have already achieved strong sales figures. For 2014 financial year (its first financial year with operations in Estonia), H&M achieved a turnover of 24.5 MEUR in Estonia, which amounts to ca 10% of total clothing and footwear retail sales in the country.

The residential property market in Tallinn also continued to show good progress, with the average apartment sales price increasing by 16% in 2014 in Tallinn, reaching 2008 price levels. The Q4 2014 transaction volumes in Tallinn, in square meters, showed its best results since Q2 2007 indicating an increasingly active property market and sufficient consumer confidence for larger investments.

Retail turnover growth in Estonia, compared to previous year Q1 Q2 Q3 Q4 2014
Retail trade, except of motor vehicles and motorcycles 6% 7% 6% 5% 6%
Retail sale of textiles, clothing, footwear and leather goods 30% 23% 18% 10% 19%
Retail sale of household goods and appliances, hardware and building materials 9% 8% 3% 8% 7%

Source: Statistics Estonia