Estonia’s retail slump continues to worsen

Retail trade in Estonia has been on a downward trajectory for the past two years, with the latest data showing another decline in August 2024. According to Statistics Estonia, retail trade turnover fell by 4 per cent compared to the same month in 2023. This marks the 24th consecutive month of decline, as consumer spending continues to slow.

In August, retail trade companies reported a turnover of 889 million euros. The main drivers behind the decline were stores selling manufactured goods and grocery stores, both of which experienced a 4 per cent drop in turnover year-on-year.

Johanna Linda Pihlak, an analyst at Statistics Estonia, highlighted the ongoing nature of the downturn. “The drop in the volume of retail trade turnover in August was mainly due to stores selling manufactured goods and grocery stores.”

Month-on-month, the situation was similarly challenging. Compared to July 2024, retail trade volume in August fell by 1 per cent, further underscoring the sustained pressure on the sector.

The continuing decline in retail trade reflects broader challenges in the economy, with inflation, high interest rates, and changes in consumer behaviour all contributing to reduced spending.

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August 2024 Consumer Spending in Estonia Economics Estonia Estonia Retail Trade Statistics Estonia Retail Trends 2024 Retail Trade Volume Retail Turnover Decrease