Due to its major expansion, Prisma has operated at a loss in Estonia for the past three years, but is on track to return to profitability as planned. A challenging economic environment and declining purchasing power have changed people’s consumption habits, Prisma Estonia CEO Ilkka Alarotu told Helsingin Uutiset.
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.
More read: ERR.EE
