Retail sales jump to surprising growth

Federation of Finnish Commerce and Trade wants motorway from Helsinki to Oulu

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The sales figures of retailers have turned upward into a surprisingly vigorous growth curve after a couple of years in the doldrums. Managing Director Guy Wires of the Federation of Finnish Commerce and Trade (FFCT) said on Wednesday that even the retailers themselves found it hard to believe how fast the growth had been during the early part of the year.
      During the first quarter of 2006, the retail trade increased its turnover by four percent. The growth rate exceeds last year's figure by two percentage points.
     
As a result, the FFCT has raised its growth forecast for this year by one percent. The retailers themselves were hesitant to expect the initial growth rate of four percent to continue throughout the year, and instead settled for 3.5 percent in their prediction.
      According to Wires, particularly significant was the 3.6 percent upturn in current consumer goods sales. For a few years now, grocery stores have experienced non-existent growth, while outside of the federation the German discount chain Lidl has expanded strongly. "Now Lidl's greatest expansion phase seems to be over", Wires estimated.
      Wires also pointed out that the upswing in the current consumer goods trade was happening without a rise in price levels.
      The FFCT reported that home electronics, furniture, and gift article outlets, in particular, had enjoyed above average success during 1Q/2006.
      The home electronics and furniture sales had surged up by no less than ten percent from last year's figures.
      Such growth was last experienced in the specialised retail trade ten years ago.
     
The FFCT chairman of the board, the SOK Corporation CEO Kari Neilimo, suggested a motorway be built through Finland from the capital Helsinki to the northern technology centre of Oulu.
      Another motorway across the southern parts of the country from Turku in the west to St. Petersburg in Russia should also be completed.
     
In Neilimo's view, the motorways would benefit the national economy. People and goods would travel safely across the country, Neilimo argued on Wednesday as the FFCT presented its objectives for the government's next period of office.
      The FFCT demanded that the next government invest more in the Finnish road network than the current administration has done.
      Neilimo urged the next government to give up tight budget restrictions that enable the construction of only "short bits of roads".
     
In addition to motorways, the retail trade is looking towards a host of tax reductions.
      According to Neilimo, this is not at odds with the motorway infrastructure undertakings. The tax deductions would eventually add to the state revenue through increased economic activity.
      He also added that even the lowering of the car tax would eventually increase the overall tax revenue.


Previously in HS International Edition:
  Growth rate of trade in current consumer goods dips below zero (9.6.2005)

Helsingin Sanomat