According to Bauhof, chain of DIY and gardening stores, customers are shopping more often but spending smaller amounts due to the economic downturn, with larger projects being postponed. One of the most important factors in sales growth, the company sees, is the online store, where the speed and convenience of delivery are increasingly important in maintaining customer satisfaction. According to the parcel delivery company Venipak, the clients are using more courier services when purchasing non-standard, heavier construction or gardening products. The use of parcels lockers is also steadily growing each year.
“In both retail and business client sectors, we see that purchase frequency has risen, but the average basket value has decreased. There is strong price pressure, and customers are increasingly looking for more affordable alternatives to expensive brands,” said Priit Vao, Director of Corporate sales and e-commerce of Bauhof. In the business sector, competition is particularly intense, as even a 0.5% price difference can determine whether an offer is won or lost.
The COVID-19 period spurred demand in gardening and interior finishing, with a particular focus on wall paints, wallpapers, and flooring materials, and the same trend can still be observed among private customers today. “One reason is price fluctuations and tax changes, which have caused consumers to postpone larger projects. Smaller repairs are being taken on, meaning that consumers are putting off bigger projects and instead doing smaller home repairs and gardening themselves,” explained Vao private customers’ buying habits.
Customers are moving to online channels, with delivery speed and convenience becoming increasingly important
Bauhof focuses primarily on the local market, offering solutions to both retail and business clients who increasingly value flexibility. Although online sales and communication are becoming more popular among consumers, this trend also supports physical stores, as online store discount campaigns positively impact store sales as well.
“With a large share of sales having shifted to the online store, the speed and convenience of obtaining products have become an increasingly important aspect of customer satisfaction. When choosing a service provider, customers primarily consider the proximity and price of parcel machines. However, customers are willing to pay more for a parcel machine with a better location. Although nearly 70% of customers prefer to pick up their items themselves, Estonians are still active users of parcel machines, and everything that fits is ordered to them. This also motivated Bauhof to place its own parcel lockers in front of all stores, allowing customers to pick up their online orders 24/7,” noted Priit Vao, Director of Corporate sales and e-commerce of Bauhof.
According to Martten Kaldvee, Head of Sales of Venipak Estonia, convenience in receiving goods around the clock is increasingly important to customers. “Just like 24/7 gyms, which are very popular today, convenience is also valued when collecting items ordered online. If it’s not possible to pick up construction materials from a parcel locker near one’s home or workplace or a courier service is always a good solution,” said Kaldvee.
According to a recent survey by Norstat, 40% of respondents in Estonia are frequent shoppers who buy online at least once a month. Parcel lockers remain the most common choice for delivery of goods and its usage increasing steadily since 2022. Second most common delivery type in Estonia is delivery to home and the third – pick up at the store.