Retail Facts Finland 2019
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Retail Facts Finland 2019 NITIE TU S F R OR O P P O Join us! S R IN E T L E I R A N T AT E I O N A L R A stable, Why Finland? transparent and well-performing Nordic country Population GDP growth grows rapidly in forecast is the the largest cities, highest in the FINLAND OVERVIEW especially in Nordics in 3 Helsinki *The 2020 happiest 8 THE FINNISH RETAIL MARKET country 16 HELSINKI METROPOLITAN AREA in the world for the second Growing year in a row 25 TAMPERE shopping centre Retail market is growing market, high quality 29 TURKU opportunities for faster than the retail brands Eurozone 33 ESTABLISHMENT FACTS Wealthy consumers with purchasing power 34 CONTACT INFORMATION among the top 10 in EU *Sustainable Development Solutions Network, World Happiness Report 2019 Cover photo: Amos Rex / Mika Huisman Chapter 1 Finland overview Photo: Helsinki 365 desing boutique in Punavuori / Jussi Hellsten Well-performing stable Nordic country A member of the European Union and the only Nordic country in the Eurozone The Nordic region continues to outperform the rest of Europe in rankings. All Nordic countries are ranked in the top 10 best countries in the world for doing business and the region’s residents are among the happiest and the wealthiest. €9,900 RETAIL AND F&B SALES KEY FACTS FINLAND PER CAPITA 2018 Population 2018 5.5 million GDP per capita 2018 EUR 40,567 FINLAND GDP growth 2018 2.3 % Tampere GDP growth 2019 (f)* 1.4 % SWEDEN NORWAY Ination (Mar 2019) 1.1 % RUSSIA Turku Unemployment rate (Mar 2019) 7.0 % Oslo Helsinki Disposable income per capita 2017 EUR 23,200 3h 30min Retail sales 2017 EUR 47,900 million Stockholm Retail sales growth 2018 2.8 % 2h St. Petersburg F&B sales 2017 EUR 6,600 million Tallinn F&B sales growth 2018 4.9 % ESTONIA Retail and F&B sales per capita 2017 EUR 9,900 Corporate tax rate 20 % DENMARK Source: Statistics Finland, Finnish Council of Shopping Centers *EU, Copenhagen FInland overview // 4 GDP growth forecasted to be the highest in the Nordics in 2020 Finland’s GDP per capita is 10% above the latter being set to become the major GDP DEVELOPMENT AND FORECAST EU average. In 2018 Finland’s GDP grew by growth driver. 2,3%, fastest rate in the Nordics together Private consumption increased by 2.7 % with Sweden. % in 2018 and is projected to grow by some 2.7 2.4 After a positive start, the growth 1.7 % in 2019, reecting the improved labor 2.3 2.3 2.3 slowed in following quarters of 2018 and market and the above-average level of 2.1 1.9 1.8 most indicators show that the growth will consumer condence. Spending potential 1.7 1.7 1.6 1.5 1.4 1.4 1.4 continue to decline in 2019. However, exceeds the EU average. Finland is among 1.2 Finland’s economy is still growing at the top 10 EU-countries based on above-average rate and household dispos- purchasing power per capita (2017). able income continues to rise. The current Sources: Eurostat, European Economics Forecast, growth is based broadly on net-export, .Finance Finland 2017 2018 2019f 2020f investment and private consumption, the Finland Sweden Denmark Euro area (19 countries) Source: Eurostat, forecast, EU TOP 10 COUNTRIES IN EU, 2017 DISPOSABLE INCOME PER CAPITA IN PPS, EU Luxembourg 32,681 Germany 28,473 Austria 26,730 GDP PER CAPITA GDP GREW BY France 25,022 Belgium 24,961 Netherlands 24,696 Sweden 24,498 10% 2.3% Denmark 24,404 ABOVE EU AVERAGE IN 2018 Finland 24,196 Euro area (19 countries) 23,646 Italy 21,804 Source: Eurostat FInland overview // 5 Population grows rapidly especially in Helsinki Finland has three city regions with more than 300,000 inhabitants. Nearly 40 % of the population lives in these three regions and the share is set to increase thanks to a growing population and continuous urbanization. FINLAND'S LARGEST CITY REGIONS Population 2018 Forecasted 5-year population growth 1 Helsinki region 1,553,100 4.7 % 2 Tampere region 406,600 4.0 % 3 Turku region 330,200 2.6 % 4 Oulu region 250,400 4.9 % 5 Lahti region 200,600 0.3 % Oulu 6 Jyväskylä region 185,400 2.9 % 4 7 Kuopio region 140,300 3.1 % 8 Pori region 132,500 -0.7 % 9 Seinäjoki region 126,900 2.0 % 10 Joensuu region 124,300 0.9 % Seinäjoki Kuopio Source: Statistics Finland 2019, Statistics Finland 2015 Joensuu 9 7 TAMPERE Jyväskylä 10 6 Pori 2 8 Lahti TURKU 43% 4.7% 5 LIVES IN 5YEAR GROWTH 3 1 THE THREE LARGEST IN HELSINKI REGION REGIONS HELSINKI FInland overview // 6 The top performer in international rankings Finland retains its good position in many international This illustrates Finland’s reputation as a respected Nordic rankings regarding the competitiveness of the economy where stability, transparency, high-quality economy or the overall welfare of its citizens. education and healthcare support business and living. 1st 3rd The safest The third most tolerant country in the world. nation in the world. World Economic Forum, The st rd Legatum Institute th st Travel & Tourism Foundation, The 4 1 Competitiveness 1 3 Legatum Prosperity AA/AA+ credit ratings Report 2017 The most stable The third best country Index 2018 4th best country from all major global nancial markets. for business in Europe. for gender equality rating agencies. in the world World Economic Forum, The European Chamber, Best World Economic Forum, Global Competitiveness European countries for Fitch, Moody’s, The Global Gender Gap Report 2018 business 2018 Standard&Poor’s Report 2019 1st 1st 11th 4th The most stable Top Nordic country in a 11th most competitive 4th most country in the world number of foreign direct economy in the world innovative country for 8 years in a row. investment projects. in the world. st Word Economic Forum, The th The Fund for Peace, Fragile 1 EY European Investment global competitiveness 8 World Economic Forum, The States Index 2019 Monitor, 2018 report 2018 Global Competitiveness The happiest 8th best English Report 2017-2018 country in the world. skills among the adults Sustainable Development in the world. Solutions Network, World Education First (EF), English Happiness Report 2019 Proficiency Index Helsinki Sauna Day / Helsinki Marketing / Eetu Ahanen / Eetu / Helsinki Marketing Helsinki Sauna Day Photo: Chapter 2 The Finnish retail market Uhana / Finnish Design / Laura Vanzo Uhana / Finnish Design Laura Photo: Retail market is growing faster than the Eurozone on average The retail sales increased by 2.5 % in retail sales. E-commerce has increased CONSUMER CONFIDENCE INDICATOR 2010-2019 2018. The food & beverage sector has rapidly, with an increase of 18 % in the been growing fast almost the whole rst half of 2018. 15 decade, by 4.9 % in 2018. The Finnish consumers are tech savvy 10 Positive development of the whole and internationally oriented. About 48 % of retail sector is expected to continue in 2019 the population (aged 18-79 years) shop 5 Denmark Finland and 2020. The latest forecasts for private online every month and 46 % has shopped 0,0 consumption growth vary around online on their mobile device. 38 % of the Sweden -5 1.5%. population makes purchases from foreign Euro Area The national consumer condence is online shops every month. -10 (19 countries) now lower than a year ago, when it Sources: Eurostat, Statistics Finland, Finance Finland, -15 reached the highest level in history. At 0.4 Postnord, Paytrail, Research Institute of the Finnish it is still above average at Euro area. Economy -20 Finnish online retail sales amount to Source: Eurostat -25 approximately 9 - 10 % share of the total 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 RETAIL, F&B AND GDP DEVELOPMENT 2010-2018 RETAIL AND F&B TURNOVER INDEX 2010-2016 130 126 8.6 % (2010=100) Finland F&B 125 6.4 120 115 4.8 4.9 Euro area F&B 4.4 115 4.3 4.1 3.83.7 108 3.5 Finland Retail 3.1 2.9 2.8 110 106 2.2 2.5 (non-food) 1.6 Euro area Retail 1.3 1.5 1.5 1.4 105 0.8 (non-food) 0.3 0.2 -0.5 -1.0 -0.8 0.1 100 Source: Eurostat 2010 2011 2012 2013 2014 2015 2016 2017 2018 95 Retail sales F&B sales GDP growth Source: Statistics Finland 2010 2011 2012 2013 2014 2015 2016 The Finnish retail market // 9 RETAIL SALES PER SEGMENT FOOD AND BEVERAGE SALES PER SEGMENT +2.8% in 2018 +4.9 % in 2018 Food kiosks Catering Other 12 Bars & night clubs % 2% % 3% 2 Cafes 4% Leisure 2% Sport 3% Groceries Workplaces restaurants 15 Fashion & 5% % accessories 37 % 46 Furnishing & % home decor 6% 48 6.6 Restaurants EUR billion EUR billion Electronics 6% 2017 2017 8% Hardware Department 29 & construction stores & hypermarkets Fast-food % % Health 8 13 restaurants & beauty % Source: Statistics Finland Source: Statistics Finland ONLINE RETAIL GOODS +6 % in 2018 Books, e-books & magazines 5 Other 5 % Health & % beauty Fashion 7 & footwear % 31 % 10 Sports, pets % & equipment 5.1 EUR billion 2018 Furnishing & home decor 19 % 22 % Source: Finnish Commerce Electronics Federation / Kantar TNS Sello shopping centre, Espoo Sello shopping centre, Photo: Opportunities for international retailers Scandinavian chains dominate the fashion and S Group, but German Lidl has increased its Photo: Ainoa shopping centre and sports market. Largest companies are market share. Swedish H&M, Norwegian Varner Group The presence of international retailers in and Danish Bestseller Group.