Retail Brand Evolution: The Case of Tallinna Kaubamaja Estonia’s Department Store

When Estonia regained its independence in 1991 after almost a half century of forced from the forced incorporation into the Soviet Union, a number of major changes occurred. Of these changes, one of the most overt occurred in the transition from the centrally planned, poor quality or scarce inventory retail sector, to one of free markets and customer focused products. This study, by way of a case study, examines an exemplar of a retailer that successfully brokered these changes and continues to lead the retail sector in Estonia. Tallinna Kaubamaja, (“Tallinn’s Department Store†), was established during Soviet times in 1960, continued to operate throughout transition, a public offering, domestic and international expansion, and into the world of e-commerce. Utilizing case study methods, this research provides an historical overview of how Tallinna Kaubamaja pursued the traditional retailing model of branch expansion, both in Estonia and internationally, and then into retailer brand extensions into a number of other retail fields, particularly the supermarket and e-commerce sectors. This research analyzes how a mid-sized retailer, in the smallest of the Baltic States, has met a number of challenges with respect to retail trade during the 21st Century. The findings were drawn from Tallinna Kaubamaja archives, annual reports, interviews by the author with former and current employees, and consumer shopping surveys. Contributions of this study focus on the interrelated roles of retail location, retail format, geography, history, and country of origin, on retailer brand success.