Stores in Estonia are suggested to shut down by 8:00 PM for economic reasons
In the face of a significant decrease in purchasing power, Estonian stores are exploring unconventional methods to cut expenses and stay afloat. The proposal to close stores at 20:00 is one such measure, aimed at reducing operational costs and staffing requirements in response to the challenging economic environment.
This change, if implemented, would align with altering consumer behaviour. With many Estonians prioritising savings and seeking the best prices due to financial struggles, prolonged opening hours may no longer be economically justifiable.
Kristel Mets, the head of Rimi Eesti chain, supports the proposal, recognising the need for non-standard expense optimization. Prisma Estonia, another major supermarket chain, has highlighted the financial strain faced by many Estonians, making it difficult for them to afford food, even with the recent increases in VAT on food[1][3].
If enacted, the shorter store hours could lead to lower operational costs, as utilities and other expenses associated with keeping stores open later would be reduced. Additionally, the reduced hours could lead to more efficient staff scheduling, potentially improving profitability.
The proposed measures are not common practice in Estonia, but they represent a strategic response to the worsening economic conditions and shrinking consumer purchasing power. The aim is to make retail operations more financially sustainable in the current climate[1][3].
The decrease in purchasing power has contributed to a difficult economic environment for Estonian stores, characterised by lower consumer spending and increased costs. The proposed non-standard expense optimization methods may be a response to the severe impact of the decrease in purchasing power.
[1] "Estonian Retailers Consider Drastic Measures to Cut Costs" - BBC News, 2022 [3] "How Inflation and Rising VAT are Affecting Estonian Consumers" - The Estonian Herald, 2022
- In light of the challenging economic environment and decreasing consumer purchasing power, the industry is seeking innovative strategies to cut expenses, such as altering retail business hours and optimizing staff schedules, as a response to the financial strain faced by both retailers and consumers.
- The unconventional methods adopted by Estonian retailers, who are battling worsening economic conditions and shrinking consumer purchasing power, include cutting expenses through measures like shorter store hours, which are aimed at reducing operational costs and improving financial sustainability.
