The sales revenue of Tallinna Kaubamaja Group increased by 6.6% last year


The unaudited consolidated revenue of Tallinna Kaubamaja Group in 2013 was 498.7 million euros, which is an increase of 6.6% compared to the result of 2012. The sales revenue of the fourth quarter exceeded that of the previous year by 8.5%. The group’s unaudited consolidated net profit in 2013 was 17.5 million euros, which is 16.3% less than last year. The group’s net profit in the fourth quarter was 8.9 million euros, which exceeded the profit of the same period last year by 8.9%.

 “All in all we can be satisfied with the past year, especially with the last quarter. The growth in sales has been delightful compared to Estonia’s general retail sales indicators,” said the Chairman of the Management Board of the Tallinna Kaubamaja Grupp, Raul Puusepp. “During 2013, we have put the emphasis on drop shipments of goods and increasing the share of own production. This provides the opportunity to offer our customers good quality merchandise at the best price,” Raul Puusepp added. According to Puusepp, the challenges of the year 2013 have been the increased administrative costs and the growth of the labour costs related to expanding. “We think the positive side of adjusting the wage costs is the decline in flow and the consequent rise of competence and work efficiency of the staff,” he added.

Raul Puusepp pointed out that 2013 can be summed up as a year of development for the group, which has laid a good foundation to stay in competition hereafter. “We completed the renovation works that lasted for two years in the departments of Kaubamaja, thanks to which the sales area of our department stores expanded by 6% and Southern Estonia got its largest toy store embodied by the Kidswear and Toys department. In Selver, we introduced a new trade software, increased significantly the number of SelveEkspress self-service checkouts and opened five new sales buildings. Adding the sales activities of car enterprises had a positive effect on the growth of the car sales segment. In Latvia, we started selling Peugeot private cars and utility vehicles and a new 3000 square meter multi-brand premium retail store was finished at the end of the year,” explained Raul Puusepp.

According to Raul Puusepp, the second important milestone of 2013 was the introduction of innovative customer-targeted e-solutions: “We made the first steps of e-trade with the pilot project of Kaubamaja’s Osturalli e-shop and we intend to continue that development this year. A number of innovations occurred for the users of Partner Card – e-reciept, a Partner e-gift card and, in cooperation with LHV Bank, the Partner Bank Card, all well recieved by our customers.” By the beginning of this year, the number of the group’s Partner Card holders had increased by 3.4% to 573,000 people in comparison with the last year, also the relative importance of regular buyers in the group’s revenue increased to 82.1%. “It shows that the confidence of our regular customers towards us is continually high. We think that developing e-solutions in modern commerce is very important and I believe that this is one of the key topics to maintain customer satisfaction hereafter,” noted Raul Puusepp.

This year, the Tallinna Kaubamaja Grupp will continue focussing on increasing profitability. “We aim to increase the sales efficiency of our existing sales spaces and arranging brand portfolios. Certainly, we will continue to upgrade and develop the services offered to loyal customers,” noted Raul Puusepp.

The consolidated sales revenue of Selver supermarkets in 2013 was 343.1 million euros, increasing by 4.0% compared to the previous period. The net profit of Selvers was a total of 4.7 million euros, dropping by 48.5% in a year. The revenue of Selvers in 2013 was an average of 360 euros in a month per square meter of a sales area, which was 5.3% less than in the same period last year. 33.8 million purchases were made in Selvers in 2013. 43 Selvers and a gourmet shop belong to the Selver chain as of the end of December, 2013. The sales area of the shops is 82.4 thousand m² as of the end of 2013.

The sales revenue of the business segment of the Department Stores was 89.6 million euros, an increase of 3.9% compared to the previous year. The net profit of the Department Stores was 3.2 million euros last year, dropping by 7,2% in a year. The revenue of the Department Stores in 2013 was an average of 290 euros in a month per square meter of a sales area, which is the same it was in 2012.

The sales revenue of OÜ TKM Beauty Eesti operating the I.L.U. cosmetics shops in 2013 was 4.6 million euros, increasing by 11.5% compared to 2012. Last year, the I.L.U. chain had a net loss of 0.4 million euros, which is 13.2% better than the result of the previous year.

Tallinna Kaubamaja Group’s car trade’s sales revenue of the past year was 48.0 million euros, surpassing the revenues for the same period of the previous year by 40.3%, also the revenue of KIA sales increased by 14.7%. In total, 2650 vehicles, that is 752 cars more than in the same period the last year were sold in 2013 in the group’s car segment. The net profit of the car trade was 1.9 million euros last year, showing a growth of 7.7%.

The revenue of the footware stores belonging to the group in 2013 was 14.7 million euros, up by 1.7% in a year. The net loss of the footware stores last year amounted to 0.1 million euros, which is equal to the loss of 2012. As of the 1st of January, 29 shops with a total area of 9 thousand m² are part of the group’s footware store chain.

The external revenue of the real estate segment in 2013 was 3.3 million euros, an increase of 14.0% compared to last year. The segment’s net profit was 7.8 million euros last year, which is 16.1% higher than last year.