Photo: YIT development of shopping centres will be positive in HMA, despite the increasing supply.
Vote with Your Feet
Positive development is also being witnessed in the KTI indices commissioned by the Finnish Council of Shopping Centers. According to the indices, comprising 38 shopping centres in Finland, the number of visitors and retail sales in shopping centres increased by 5.9 % and 6.0 % in the third quarter of 2016 compared to the previous year. In the Helsinki Metropolitan Area, retail sales grew by 5.4 %, while elsewhere in Finland the growth was as high as 6.9 %. The cumulative figures for the previous 12 months showed an increase of 4.5 % in the number of visitors, and the increase of 3.3 % in retail sales compared to the previous 12 months.
According to KTI, you should expect especially the large shopping centres in HMA to emerge as winners in the tightening competition. About half of the Shopping Center Barometer respondents believe that rents will grow and occupancy rates will increase during the next three years. However, in the smaller shopping centres in HMA, as well as in the shopping centres elsewhere in Finland, the rents and occupancy rates are expected to remain stable or decrease. Nevertheless, the outlook is more positive compared to previous year’ s survey across Finland.
Diversification Takes Hold
According to the KTI report, the supply of shopping centres is also evolving. The importance and market share of traditionally large business fields such as fashion and department stores are decreasing in shopping centres. Meanwhile, the importance of, for example, restaurants, health and beauty, leisure and public services keeps increasing.
One example of the way shopping centres are coping with the times is Forum, located in downtown Helsinki, which was selected as Finland’ s best shopping centre by the Nordic Council of Shopping Centres( NCSC) in October, 2016. Having gone through a three-year renovation project, the new-and-improved shopping centre was fully launched in autumn 2015 and has performed very well ever since.
Originally founded in 1985, Forum was one the first shopping centres in the land and has thrived largely due to great location and diverse offering( 140 stores). With the € 50 million renewal project, Forum not only added 8,000 sqm of retail space, but also tightened its hold on the key demographics. For example, the friends of fashion, sports and leisure activities are sure to enjoy their time here.
Nordicum 19