People in Lithuania shop like it's Christmas every day, say retailers

A decade ago, December was a golden month for traders. Turnover during the Christmas period used to increase by around 40 to 50 percent. However, the trend has changed – people in Lithuania now spend equally much every month.

"Christmas trading is no longer exceptional compared to the peak months," Dainius Dundulis, owner of the Norfa supermarket chain, told LRT TELEVISION.

This festive December was only a few percent more profitable than the summer, he added.

"People are already living well every day. Christmas is no longer a special holiday and there is no longer a lot of money spent on, say, the Christmas table compared to every day," said Dundulis.

Iki supermarkets also did not expect a significantly higher turnover in December. Compared to the previous year, their shoppers spent more and visited the stores more often.

"According to our survey, the majority of loyal Iki customers were planning to spend around €100 [on Christmas dishes]," said Gintarė Kitovė, a spokesperson for the chain.

Retailers note that every year Lithuanians can afford more.

"We are delighted with Christmas sales this year. There were predictions that shoppers would save money, but at least in Maxima's stores there was nothing like that," said the supermarket chain’s representative Snieguolė Valiaugaitė.

According to Gediminas Šimkus, Chairman of the Board of Governors of Lithuania’s central bank, people have been more thoughtful with their spending.

“People are saying that, yes, I can see an increase in income, yes, I can save, but before I buy a durable good, a more expensive good – I measure nine times before I cut," says Šimkus.

Savings are also reflected in the continued growth of people's bank deposits.

"It is very encouraging that even in such favourable circumstances as we have observed this year, the population allocates the bulk of its income much more rationally," said Indrė Genytė-Pikčienė, Chief Economist of Šiaulių Bankas.

According to her, people may be saving more because of increasing incomes, financial literacy, as well as fears of war or other crises.