Alarotu explained that the losses sustained over several years were the result of major investments in the chain's expansion, during which five new Prisma stores were opened and the remaining stores were renovated.

Now, however, the company has a plan in place to return to profitability, and according to the chain's CEO, things are progressing as expected.

Alarotu described the main challenge facing the retail chain as the generally difficult economic situation in Estonia and the decline in people's purchasing power.

"Many Estonians don't have enough money even for food, let alone for non-food goods," he said, adding that half of Prisma's retail space is dedicated to non-food products.

In the interview with the Finnish publication, Alarotu emphasized that following the value-added tax (VAT) hike in July, Estonia's VAT on food is now 10 percentage points higher than in Finland. Overall, only a few products in Estonia are cheaper than in Finnish retail.

According to Prisma Estonia's CEO, consumer purchasing habits have also changed, with more and more people seeking opportunities to save and find the best price on the market.

"The mindset is different in Estonia. War and preparedness for it are important, and the money for that has to come from somewhere. Estonia has decided to tax consumption rather than income," he said.

The decision to significantly lower the prices of certain specific products has already had a positive impact on June and July sales figures, the chain's CEO noted.

Prisma Peremarket's turnover fell by more than 6 percent last year to €206 million, and the chain posted a loss of €3.5 million. However, the loss was smaller than the year before, when the chain had posted a €7 million loss.

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