Malaise in the retail sector has spread also to retailers located close to city centres, says Jaana Kurjenoja, the chief economist at the Finnish Commerce Federation. "The decline in sales has for a while now pestered regional centres. Today, the erosion of purchasing power is also felt in city centres," Kurjenoja says. Purchasing power has deteriorated in the regions due to urban migration and in southern population centres due to a decrease in the disposable income of residents.
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Erosion of purchasing power also felt in cities
Consequently, Kurjenoja estimates, the number of people employed in the retail sector will fall by 5,000 and in the entire commerce sector by 6,000 people. "I wouldn't be surprised if the outlook darkened even further.