Shopping malls are steering euros away from the centre of Helsinki

Expanding shopping malls Sello and Jumbo are revolutionising the retail business in the capital region

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Two gigantic shopping malls, Sello in Espoo and Jumbo in Vantaa, are changing the retail business in the Helsinki area. The expansion of Sello, which opened last week, is estimated to treble the sales there, and Jumbo is expecting a 50 percent rise in its turnover after completing the expansion work on the complex next month.
      Both Sello and Jumbo are aiming for EUR 300 million sales next year, a target set by Itäkeskus, which currently holds the record for the largest shopping mall turnover in Finland. Itäkesku is in East Helsinki.
      The retail experts expect that shopping centres in downtown Helsinki and other district centres are going to lose customers to the new hypermarkets.
     
Helsinki city centre has lost market shares at an increasing rate. In 2000 the city centre's market share of the retail business was over 10 percent; by last year, however, it had plummeted to 8.5%.
      "Downtown Helsinki has nevertheless held its position as the leader in the consumer goods business", says trading centre division manager Heikki Heinimäki from Tradeka Corporation.
      Heinimäki estimates that the current development to favour larger shopping complexes instead of district shopping centres is permanent. Small shops can be successful if they move their premises into the shopping complexes or to their close proximity.
     
According to Jorma Nyrhilä, the deputy managing director of the Helsinki Chamber of Commerce , there is no danger of an oversupply of goods regardless of the ongoing expansion of the shopping malls.
      "Naturally there will be more competition, but this will only force the shops to shape up their business. The current shopping centres provide leisure activities alongside shopping opportunities", Nyrhilä states.
      "Covered spaces, good transportation links, and parking capacity attract new consumers to the shopping complexes."
      However, Nyrhilä continues to believe in downtown Helsinki's appeal.
      "It has the same resources as the shopping complexes; plenty of shops in a confined space."
      Helsinki, too, has plans for a counterattack: the Kamppi Center will be adding a further 40,000 square metres of shopping space in March next year, and the flagship Stockmann department store is set to expand. Helsinki's main fear is that motorists will shy away from expensive parking or traffic restrictions.


Previously in HS International Edition:
  Opening of new section of Espoo shopping mall expected to bring traffic jams to major thoroughfare (14.9.2005)

Helsingin Sanomat