Tallinna Kaubamaja Group closed the first quarter of 2015 with the consolidated unaudited sales revenue of 123.5 million euros, which represents an increase of 3.2% in a year. The sales revenue increased in the group’s main areas of activity, the earnings before tax for the first three months have tripled compared to the year before, reaching 2.7 million euros. 

“The sales revenue of the first quarter of 2015 followed the overall trend of the Estonian retail market. For several years running, unseasonably warm winter has hindered the sales of winter clothing and footwear,” said Raul Puusepp, the Chairman of the Board of Tallinna Kaubamaja Grupp AS. “In spite of generous discounts on winter products, the margins have still improved due to better commercial management and successful launch of the new commercial software,” added Puusepp.

 The reason behind the growth of Selver supermarkets lies in previously launched development projects and the new Astri Selver in Narva opened in June last year. “It is a positive sign that in highly competitive conditions where new stores are being opened on a regular basis, our customers have remained loyal to Selver supermarkets. I am sure that successful marketing campaigns have played a significant part in it,” noted Raul Puusepp.

 “Besides warm winter months, the outcome of the department stores segment was also affected by the record-low number of tourists; however, despite negative factors we can be satisfied with the sales growth,” said Puusepp. The unfavourable weather hit the hardest on the footwear stores. “In the footwear trade, the decrease in sales was connected to, besides fickle weather, significantly tightened competition situation. The largest ABC King store at Viru centre is still going through the launch phase due to relocation. Taking into account the changed situation in the footwear trade segment, we are renewing the assortment and brand portfolio of SHU and ABC King stores, and paying special attention to improving service quality,” added Puusepp. 

This year, the focus of Tallinna Kaubamaja Grupp AS will be on e-commerce and the development of the technological solution of the Partner Card loyalty program. In autumn the construction works of a shopping and entertainment centre in Viimsi will be finished, where the group plans to open a new Selver supermarket. Also, the development of SelveEkspress service will be continued. 

The consolidated sales revenue of Selver supermarkets in the first quarter of 2015 was 86.3 million euros, up by 4.7% compared to the previous year. The net loss of Selver supermarkets was 1.2 million euros. The loss increased by 0.1 million euros during a year. In the first quarter of 2015, the sales revenue of Kulinaaria OÜ, a subsidiary of Selver AS, rose by 2.2% compared with the same period of the previous year. In the first three months of 2015, 8.2 million purchases were made in Selver supermarkets, this figure has remained stable. By the end of the first quarter of 2015, Selver supermarket chain operated 44 stores with 83.9 thousand square metres of sales space. 

The sales revenue of the department stores’ business segment for the first three months of 2015 was 21.8 million euros, having increased by 5.8% compared to the same period in the previous year. The net loss of department stores for Q1 was 1.3 million euros. The yearly increase in the net loss amounted to 0.9 million euros.

 The sales revenue of OÜ TMK Beauty Eesti that operates the I.L.U. cosmetics shops was 1.1 million euros in the first quarter, up by 8.9% compared to the same period in 2014. The loss of Q1 was 0.1 million euros, which is by 6.4% less than the loss of the same period of 2014. 

The sales revenue of the group’s car trade segment in the first quarter of 2015 was 12.3 million euros. Compared to the same period of the previous year, the sales revenue had decreased by 0.8%. During the first three months of the year, a total of 565 vehicles were sold. The segment’s earnings before tax for the first quarter of 2015 were 0.5 million euros, which exceeds the earnings of the year before seven times. 

The sales revenue of the group’s footwear stores for the first quarter of 2015 was 2.2 million euros, decreasing by 34.3% compared to the same period of 2014. At the same time, the loss for Q1 of 2015 decreased by 0.06 million euros, which is 7.5% less than the loss for Q1 in 2014. 

The external revenue of the real estate and business segment was 0.8 million euros in the first quarter of 2015, which is 0.2% more than in the same period last year. The real estate segment’s net earnings before tax for Q1 in 2015 amounted to 2.1 million euros, remaining unchanged compared to the results of the same period last year.