TKM Group Reports Third Quarter Growth Amid Market Challenges
Sales Revenue Trends in the Third Quarter
The TKM Group reported a consolidated sales revenue of 232.7 million euros for the third quarter of 2025, marking a notable increase of 1.5% compared to the same quarter last year. This positive outcome reflects the Group's ability to navigate through challenging economic situations and adapt its strategies to foster growth. Despite a slight overall decline in the first nine months of 2025, which totaled 680.4 million euros, the upward trend in recent months signals a potential recovery in sales momentum.
Performance Across Various Segments
In analyzing the results, nearly all business segments showed sales growth with significant contributions from supermarkets, which generated 150.9 million euros in the third quarter, a 0.9% increase from 2024. The department stores segment also achieved positive results with a 3.8% increase, reaching 22.4 million euros in the same period. The performance in these segments underscores the Group's resilience in adapting to consumer preferences and market demands.
Car Segment Challenges
However, the car segment faced challenges, with sales declining by 9.6% to 135.2 million euros in the first nine months. Market fluctuations driven by the earlier implementation of vehicle taxes and decreased consumer confidence resulted in reduced sales volumes. Yet, encouragingly, new sales programs targeting corporate clients have emerged to stabilize this segment's performance.
Profit Margins and Cost Management
The TKM Group's pre-tax profit for the third quarter registered at 8.1 million euros, lower by 5.7% compared to the previous year. The decline in profits is attributed to increased costs, particularly in staffing and operational expenses, which have surged in line with market inflation. In response, the Group has continued to optimize its supply chain and operational efficiencies to improve profit margins.
Initiatives to Enhance Customer Loyalty
As the number of loyal customers exceeded 750,000, the Group underscores the importance of customer retention and engagement strategies. The Partner Card mobile app has become a critical digital tool, boasting over 323,000 active users. This evolution in customer interaction reflects TKM's commitment to enhancing the shopping experience while adapting to technological advancements and consumer preferences.
Strategic Renovations and Expansions
Looking forward, TKM is embarking on several renovation projects including the Jõgeva Selver store and the establishment of a brand-new Papiniidu Selver in Pärnu. These initiatives are aimed at revamping customer experiences and ensuring that sales infrastructures meet modern standards and consumer expectations. Furthermore, the renovation of the Children’s Department in the Kaubamaja Tallinn store is also set to enhance overall functionality and appeal.
Ongoing Challenges and Future Outlook
The overall retail sector in Estonia continues to grapple with challenges due to declining purchasing power and heightened tax rates impacting consumer behavior. Nonetheless, the TKM Group is setting its sights on long-term goals that include sustainability practices and innovations in product offerings. With strategic preparations in progress for upcoming store openings and improvements, TKM is positioned to proactively meet market demands and customer expectations.
Frequently Asked Questions
What was TKM Group's sales revenue for the third quarter of 2025?
The sales revenue reported was 232.7 million euros, an increase of 1.5% from the previous year.
How did the different segments perform financially?
The supermarket segment saw a 0.9% increase, while the department stores segment increased by 3.8%. In contrast, the car segment saw a decline of 9.6%.
What strategies is TKM implementing to enhance customer loyalty?
The Group has introduced the Partner Card mobile app, which has gained over 323,000 users, aiming to improve customer engagement and retention.
What challenges did TKM Group face in 2025?
The Group faced sales declines primarily in the car segment, impacted by vehicle taxes and shifts in consumer confidence affecting purchasing power.
What future renovations and openings are planned by TKM Group?
Upcoming projects include renovations at the Jõgeva Selver store and a new Selver store in Pärnu, aimed at enhancing customer experience and accessibility.
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