Statistics Estonia analyst Johanna Linda Pihlak said the largest increase in sales volume last year came from companies engaged in retail fuel sales where annual growth reached 14 percent.

Sales at industrial goods stores rose by 4 percent, while sales at food stores fell by 4 percent.

According to Pihlak, the increase in fuel retailers' sales volume was influenced by the lower comparison base from the year before last, as well as a drop in fuel prices.

She noted that sales revenue for fuel retailers includes not only fuel sales but total sales, which also cover income from food services and other goods and services.

"The decline in food store sales volume, however, was affected by rising food prices," Pihlak said.

Sales volume still dropping for food

Retail trade enterprises posted €1 billion in sales revenue in December of last year, with sales volume holding steady compared with the same month in 2024.

In December, sales volumes rose by 1 percent year-over-year at industrial goods stores and by 10 percent at fuel retailers.

The decline in food store sales volumes continued in December, falling by 5 percent over the year.

Sales volumes at industrial goods stores resumed growth in December, rising 1 percent compared with December 2024. The largest increase — 9 percent — came from other specialized stores, which primarily sell computers and accessories, books, sporting goods, games, toys and similar items. Sales volumes also rose 2 percent at pharmacies and cosmetics retailers.

Among industrial goods, sales volumes fell 6 percent at second-hand stores and in out-of-store retail such as kiosks, markets and direct sales and 5 percent at stores selling household goods, appliances, hardware and construction materials.

Sales volumes also declined 4 percent at stores selling goods by mail or online, as well as at other non-specialized stores dominated by industrial goods, such as department stores.

Sales at textile, clothing and footwear stores fell by 2 percent compared with December 2024.

"Compared with November, the sales volume of retail trade enterprises grew by 13 percent in December, which is a typical jump due to major Christmas and New Year sales," Pihlak explained. According to seasonally and calendar-adjusted data, sales volumes remained at the previous month's level.

Economists: Money saved on cars not spent on other goods

Commenting on last year's retail figures, Luminor chief economist Lenno Uusküla said the sector was sluggish: "Prices rose and purchasing power declined. Car sales were weak, following an exceptionally strong year previously. That's why overall growth remained minimal. The 2 percent annual increase compared with 2024 was largely driven by higher fuel sales, which rose due to Lithuania's excise policy, bringing more cars to refuel in Estonia."

"In December, there was no indication that households had started spending in advance from the additional income they'll receive this year from the income tax exemption," Uusküla added. "Excluding car sales, December's figures were 0.4 percent lower than a year earlier. Including cars, sales dropped 12.1 percent. The money that would have gone to car purchases wasn't redirected toward other spending."

According to Uusküla, second-hand sellers had a good year, while sales in supermarkets continued to decline, reflecting reduced purchasing power.

"As prices in Estonia have continued to rise and price growth has outpaced that of the rest of Europe, cross-border shopping has become increasingly attractive. Judging by travel and parcel shipment statistics, people are making active use of this option," he said.

Bigbank chief economist Raul Eamets noted that looking deeper into the data, car sales clearly took the hardest hit over the year. Food retailers and large retail chains, as well as building supply stores, also ended the year in the red.

"Throughout the year, the retail sector was driven by fuel station sales volume growth, which was fueled by a price war and unusually low fuel prices," Eamets added.

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