Maxima Eesti communications manager Janika Jaago told ERR that from the point of view of competitors, the change is a positive one, as any market movement stimulates participants.

"This definitely made our morning brighter and more interesting. Coop currently holds about a 22 percent market share and will gain over 5 percent more. But more importantly, it gains access to cities, whereas today it is more represented in rural areas," Jaago noted.

Rimi Eesti CEO Kristel Mets said they had been waiting to see what would happen with Prisma, as a parent company cannot indefinitely subsidize a loss-making business.

The chain's losses reached €3.5 million in 2024, compared with nearly €7 million the year before and €6.1 million in 2022. Prisma last turned a profit in 2021.

Both Rimi and Maxima believe that the change in Prisma's ownership will not affect their operations or strategies. Mets said Rimi itself would not have been interested in acquiring Prisma, although when asked whether they had been approached with an offer, she declined to comment.

"I believe Rimi has chosen other paths for growth and expansion," Mets said, questioning what there is to acquire in Prisma's case. "They have very few assets — mostly leased premises. How do you even assess the value of a company that has been loss-making for years and has no owned assets, only a lease-based business model?"

According to the Rimi CEO, competitive pressure in Estonia will remain strong even after the deal as the number of stores will not decrease, while Coop will strengthen its position as market leader in Tallinn and Harju County.

Janika Jaago said Maxima was aware of efforts to find a buyer for Prisma only at the level of rumors and Maxima itself also had no interest in acquiring it.

Analyst: Consumers unlikely to lose out

SEB economic analyst Mihkel Nestor said that for consumers, it is beneficial to have as much competition as possible, but the deal between Coop and Prisma is unlikely to make consumers' lives worse.

"Estonia's retail sector has often been described as having extremely intense competitive pressure, with many companies and a very large number of stores. The result is what we are seeing today — one player has decided to leave the Estonian market because it is simply very difficult," Nestor said.

At the same time, he noted it would be surprising if this move were followed by further consolidation or additional acquisitions of retail chains.

"But if two very large chains merge, then changes in specific stores could certainly occur," the analyst added.

Nestor pointed out that while overall retail sales volumes are improving, the situation varies across segments and in the supermarket sector in particular, sales figures remain modest and volume growth is limited.

One possible explanation, he said, is a shift in consumer behavior. Nestor explained that whereas in the past people might have gone to Prisma or another large retail chain and, in addition to buying food for the coming week, also purchased items like a new jacket or household appliances, today those purchases are made in different stores. This, in turn, puts strong pressure on large supermarkets' profit margins.

"The areas where it was easier to generate profit were clothing and home electronics," Nestor said.

Neither Nestor nor the retail chains were able to estimate the likely size of the purchase price for Prisma.

The sale of Prisma Peremarket to Coop Eesti Keskühistu is awaiting approval from the Competition Authority and the parties hope to complete the transaction during 2026.

--

Follow ERR News on Facebook and X and never miss an update!