The consolidated unaudited sales revenue of the Tallinna Kaubamaja Group in the 1st quarter of 2012 was 106.0 million euros. Compared to the 1st quarter of 2011, when the sales revenue was 96.1 million euros, the growth was 10.3%. The sales revenue increased in all the segments of the Group, while the vehicle trade segment and the footwear segment indicated the greatest growth among the retail business segments.
The consolidated sales revenue of the business segment of supermarkets in the 1st quarter of 2012 and the sales revenue in Estonia were 77.3 million euros, having increased by 7.1% compared to the period of a year earlier. The average monthly sales revenue of goods per a square metre of selling space in the 1st quarter of 2012 was 0.36 thousand euros, having increased by 6.3% compared to the year 2011. The sales revenue of comparable goods per a square metre of selling space in the 1st quarter was an average of 0.37 thousand euros per month, thus showing a growth of 7.7%. In the first three months of 2012, 6.4 million purchases were made from the Selver stores located in Estonia, exceeding the number of purchases made in the 1st quarter of the previous year by 1.5%. The increase in the sales revenue of the Selver stores in the 1st quarter has been promoted by successful sales campaigns and the fact that sales during the holiday season of the 1st quarter grew more than on average. In addition, the impact of the leap year was significant, as it added an extra selling day to the period under observation. Compared to the low reference base of the previous year, the sales revenue of industrial and convenience goods showed an improvement in the 1st quarter. The impact that the rise in prices had on the growth of the sales revenue of food products has started to reduce and the decrease of sales volumes has slowed down. Selver stores continue to focus on adapting the selection of goods to the changes in demand and on ensuring the availability of goods – the results are also becoming apparent in the improving sales results. Compared to the same period of the previous year, the increase in the sales revenue has been greatly affected by the tougher competition in the retail business market as well as the higher reference base on the account of the Soldino Selver, which was closed last year. Selver stores in Latvia have been closed down and no sales revenue of goods was earned in the 1st quarter of 2012 in Latvia. Similarly to last year, the sales revenue of the Latvian enterprise in the 1st quarter was 0.004 million euros. As of the end of the 1st quarter of 2012, the Selver chain included 34 stores and a central kitchen.
The sales revenue of the department store business segment in the first three months of 2012 was 19.0 million euros, thus having increased by 12.6% compared to the same period of the previous year. The sales revenue of department stores per one square metre of selling space in the first three months was 0.77 thousand euros per month, which is 14.7% more than during the same period of the previous year. The sales revenues were positively influenced by a successful end-of-the-season final campaign of winter goods, which was organised in January. Compared to the same period of the previous year, renovating works were done in the women’s department of Tallinna Kaubamaja from mid-January to March. The women’s department expanded and became 1,000 square metres larger than it had been so far; the completely renewed department was fully opened to customers on March 8. Due to renovations, 12.6% of the entire selling space, i.e. 2,100 square metres were closed for two months. In that space, the biggest children’s department was opened on March 22 to replace the departments of sports goods and digital devices. In the 1st quarter of 2012, the sales revenue of OÜ TKM Beauty Eesti, which operates the I.L.U. beauty stores, was 0.8 million euros, having grown by 51.8% compared to the same period of the previous year. Compared to the first quarter of last year, in April 2011 the I.L.U. chain also opened a fifth store in the Ülemiste Centre in Tallinn.
The external sales revenue of the real estate business segment in the first quarter of 2012 increased by 6.1% compared to the same period of the previous year and totalled 0.7 million euros.
The sales revenue of the vehicle segment in the 1st quarter of 2012 without inter-segment transactions was 6.1 million euros, thus exceeding the revenue of the same period of the previous year by 59.9%. In the first three months of the year, a total of 349 cars were sold – 147 cars more than during the same period a year before. KIA’s market share in the 1st quarter of 2012 in the Baltic states was 3.7%, at the same period of the previous year the market share was 2.6%.
The sales revenue of the footwear segment in the 1st quarter of 2012 was 2.9 million euros, indicating a growth of 13.9% compared to the same period of 2011. The considerable increase in sales was caused by the low reference base, favourable weather conditions (the sales of the 2010/2011 winter season remained in November-December of 2010, while in the 2011/2012 season, the majority of winter goods were sold in January and February), and the general boost in consumption, especially in the clothing and footwear sector. In the first quarter of 2012, two ABC King stores and one Nero store were closed in Riga due to their long-term losses. Thus, the activities of the footwear segment in Latvia have been temporarily suspended. In the second quarter, preparation works will continue to open one ABC King store (Pärnu) and one Shu store (Viljandi). The Pärnu store is planned to be opened in the beginning of July and the Viljandi store in the end of the 4th quarter. The two footwear store chains of the Group currently include 23 stores.
Raul Puusepp
Chairman of the Board
Phone +372 731 5000