Retail Facts Finland 2018

Join us! Opportunities for international retailers 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 3 FINLAND OVERVIEW especially in Nordics Helsinki *The 8 THE FINNISH RETAIL MARKET happiest country in 16 HELSINKI METROPOLITAN AREA the world Growing 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 2018 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. €9,400 RETAIL AND F&B SALES KEY FACTS FINLAND PER CAPITA 2016 Population 2017 5.5 million GDP per capita 2017 EUR 40,544 FINLAND GDP growth 2017 2.6 % Tampere GDP growth 2018 (f)* 2.8 % SWEDEN NORWAY In ation (Mar 2018) 0.8 % RUSSIA Turku Unemployment rate (Mar 2018) 8.8 % Oslo Helsinki Disposable income per capita 2016 EUR 22,490 3h 30min Retail sales 2016 EUR 45,600 million Stockholm Retail sales growth 2017 2.5 % 2h St. Petersburg F&B sales 2016 EUR 6,200 million Tallinn F&B sales growth 2017 5.9 % ESTONIA Retail and F&B sales per capita 2016 EUR 9,400 Corporate tax rate 20 % DENMARK Source: Statistics Finland, *EU Copenhagen

FInland overview // 4 GDP growth forecasted to be the highest in the Nordics

Economy is boosting again A uent population GDP DEVELOPMENT AND FORECAST Finland’s GDP per capita is 36 % above the Private consumption increased by 1.5 % in 3,2 % EU average. Within the recent years, the 2017 and is projected to grow by some 2 % 2,8 2,6 2,7 economy has entered a new growth phase. in 2018, re ecting the improved labor 2,5 2,4 2,4 2,3 Finland’s GDP grew by 2.6 % in 2017, faster market and the historically high level of 2,1 2,2 2 2,0 2,0 2,0 1,9 than that of the other Nordic countries and consumer condence. 1,8 hitting one of the highest growth rates Spending potential signicantly in Europe. exceeds the EU average. Finland is among The current growth is broadly based the top 10 EU-countries based on and well balanced with exports, private purchasing power per capita (2016). consumption and investments all increas- Sources: Eurostat, Statistics Finland, EU forecast ing, which is expected to continue in 2018. 2016 2017 2018f 2019f Finland’s economy is consistently Finland Sweden Denmark Euro area (19 countries) Source: Eurostat, forecast, EU being ranked as one of the most com- petitive economies in the world by the World Economic Forum. TOP 10 COUNTRIES IN EU 2016 DISPOSABLE INCOME PER CAPITA IN PPS, EUR

Luxembourg 31 412 Germany 27 818 Austria 26 660 GDP PER CAPITA GDP GREW BY France 24 924 Belgium 24 468 Sweden 24 265 Finland 24 138 36% 2.6% Denmark 23 587 ABOVE EU AVERAGE IN 2017 Netherlands 23 578 EU (28 countries) 21 903 Italy 21 586

Source: Eurostat, forecast, EU 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 2017 Forecasted 5-year population growth 1 Helsinki region 1,540,600 92,100 6.0 % 2 Tampere region 402,500 16,400 4.1 % 3 Turku region 328,100 7,400 2.2 %

4 Oulu region 248,300 15,900 6.4 % Source: Statistics Finland, 2018 5 Lahti region 201,200 1,600 0.8 % 6 Jyväskylä region 184,300 5,000 2.7 % 4 7 Kuopio region 139,900 4,600 3.3 % 8 Pori region 133,400 -1,000 -0.7 % 9 Seinäjoki region 126,900 4,100 3.3 % 10 Joensuu region 124,400 2,200 1.8 %

9 7 TAMPERE 10 6 2 8 TURKU 40% 6.0% 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 1st st Consumers' 1 condence in the The safest Top Nordic country in a economy is strongest country in the world. number of foreign direct in Europe. World Economic Forum, The investment projects. Travel & Tourism st st European Commission, st EY European Investment st Competitiveness 1 1 Business and consumer 1 Monitor, 2017 1 Report 2017 The happiest surveys The most stable AA/AA+ credit ratings Primary education is country in the world. from all major global the best in the world. country in the world rating agencies. Sustainable Development for 7 years in a row. World Economic Forum, The Solutions Network, World Global Competitiveness The Fund for Peace, Fragile Fitch, Moody’s, Happiness Report 2018 Report 2016-2017 States Index 2018 Standard&Poor’s

2nd 3rd 4th 10th The second most 4th best digital 10th most competitive mobile broadband The third wealthiest country in the world. competitiveness in economy in the world subscriptions per inhabitant the world in the world. Legatum Institute, The Word Economic Forum, The rd Legatum Prosperity th IMD World Digital th global competitiveness OECD, Digital Economy 3 Index 2017 4 Competitiveness 5 report 2017 Outlook 2017 5th best English The third best country 4th most innovative Ranking 2017 skills among the adults for business in Europe. country in the world. in the world. World Economic Forum, The European Chamber, Best Education First (EF), The Global Competitiveness European countries for world's largest ranking Report 2017–2018 business 2018 of countries by English skills 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 Finnish online retail sales amount to CONSUMER CONFIDENCE INDICATOR 2010-2018 2017. The food & beverage sector has approximately 7-10 % share of the total been growing fast almost the whole retail sales. E-commerce has increased 40 decade, by 6 % in 2017. rapidly, with an increase of 8 % in 2017. 30 Positive development of the whole Finnish consumers are tech savvy and inter- Finland retail sector is expected to continue in 2018 nationally oriented. About 50 % of the 20 and 2019. The latest forecasts for private population (aged 18-79 years) shop online Denmark consumption growth vary around 2 every month. More than 50 % of the online 10 Sweden %. clothing purchases are ordered from foreign 0,0 The national consumer condence online shops. Euro Area index has now reached the highest Sources: Eurostat, Statistics Finland, Finnish -10 levels in the measuring history of 30 Commerce Federation, Postnord years, which expectedly boosts the retail -20 market growth. -30 Source: Eurostat 2010 2011 2012 2013 2014 2015 2016 2017 2018

RETAIL, F&B AND GDP DEVELOPMENT 2010-2017 RETAIL AND F&B TURNOVER INDEX 2010-2016

130 126 8.6 % (2010=100) Finland F&B 125

5.9 120 115 4.8 Euro area F&B 4.44.3 4.1 115 3.8 3.7 3.6 108 3.0 Finland Retail 2.6 2.5 2.6 110 106 2.1 (non-food) 1.6 1.3 105 Euro area Retail -1.0 (non-food) -1.,4 0.2 -0.8 -0.6 -0.8 0.1 0.1 100 Source: Eurostat 2010 2011 2012 2013 2014 2015 2016 2017 95 Retail sales F&B sales GDP growth Source: Statistics Finland 2010 2011 2012 2013 2014 2015 2016

The Finnish retail market // 9 Furnishing& homedecor

Electronics

RETAILSALESPERSEGMENT

Fashion

Hardware construction

Sport

Leisure

5

4

6 % % %

3

Other %

8

3

Health & beauty +2.5 %in2017 % %

12 %

8 %

EUR EUR billion

46 2016

16 % home decor Furnishing & & magazines Books, e-books

Department stores& hypermarkets beauty Health &

Groceries

35 % & equipment Sports, pets

Source: %

7 %

9 % ONLINE RETAIL GOODS

4

Statistics Finland

Other

16

11 % % +8 %in2017

4.9

EUR billion 2017 & footwear Fashion FOOD FOOD ANDBEVERAGESALESPERSEGMENT

Electronics

26 restaurants Workplaces %

27 %

Source: restaurants Fast-food

Federation / Kantar TNS Bars & clubsnight

Finnish Commerce

15 % Cafes

29 % +5.9 %in2017 Food kiosks

4 %

3 % 6.2 EUR billionEUR

2 %

2 Catering 2016 %

Source: Restaurants

47 %

Statistics Finland

Photo: Sello shopping centre, Espoo 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. International Finland has steadily grown in recent years. How- fashion companies in the market include ever, the share of international retailers in Inditex Zara and Massimo Dutti, New Yorker, Finland is still lower compared to the rest of Mango and Marks&Spencer. Europe and there is great potential for new retailers Grocery retail market is heavily domi- to enter the largely untapped market. nated by two domestic operators K Group

Photo: Jumbo shopping centre / Kari Palsila INTERNATIONAL BRAND ENTRANTS IN FINLAND

2014 2015 2016 2017 2018 XXL Michael Kors Volt & Other Stories JD Sports

Marks & Spencer Odd Molly The Athlete’s Foot Samsoe & Samsoe Suitsupply Photo: Messukeskus Expo and Convention Centre COS Victoria’s Secret Levi’s Newbie Weekday Source: Colliers International Finland Hugo Boss Pandora Massimo Dutti Lexington Cinamon Quiksilver Espresso House Flormar Lakrids Thomas Sabo Peak Performance Taco Bell

Nespresso WHSmith Beijing8 O’Learys Power Burger King Joe & The Juice UpperCrust Scandinavian chains dominate the Finnish retail

Source: Colliers International Finland International retail chains in the Finnish market

Source: Colliers International Finland Retail consumption is over 20 % higher than that of the Eurozone Finnish retail consumption per capita is on the same level TOP 10 COUNTRIES IN EU with Sweden and it’s on the sixth place in the whole EU CONSUMPTION EXPENDITURE PER CAPITA 2016, EUR

Finns spend a large share of their 5 500 4 800 1 900 income on retail and leisure activi- Luxembourg 31 000 ties. Retail accounts for 33 % of total 5 000 4 000 2 800 household expenditure. Adding food & Iceland 28 500 2 600 4 100 1 700 beverage and leisure services, the share UK 22 700 is over 40 %. 43% 3 400 3 400 1 200 Retail, restaurants and leisure of total household Denmark 22 400 services is approx. 43 % of the total expenditureis spent on retail, F&B and leisure 2 800 4 200 2 200 consumption - EUR 8,800 per capita Austria 21 300 3 400 3 400 1 200 Finland 20 500 3 200 3 500 1 100 Sweden 20 200 2 600 3 800 800 Germany 19 200 Source: Eurostat | Photo: Helsinki Marketing / Jussi Hellsten 2 700 2 200 2 500 Ireland 18 700 3 200 3 000 1 000

Belgium 18 200 Eurostat Source:

2 700 2 800 1 200 Eurozone 17 000 2 500 2 800 1 100 EU 15 900

Groceries Specialty retail Restaurants Recreational and cultural services Other

The Finnish retail market // 14 Rapid population growth boosts the demand for shopping centres

The shopping centre market is growing, oering high quality opportunities for retail brands. Shopping centre sales have increased faster than the retail sales in general, while F&B and leisure services take larger and larger share.

The Finnish retail landscape is domi- sales continues to increase, being 16.4 % in nated by shopping centres. There are 2017 (from 13.9 % in 2010). currently 101 shopping centres in Finland The share of food & beverage BEFORE 2022 with a total GLA of more than 2 million sq continues to increase, and the total sales NEW SPACE IN HELSINKI m, ca. 440 sq m per 1,000 inhabitants. of cafes and restaurants in shopping 17 new shopping centres and 8 centres increased by over 8 % in 2017. 264,000 extensions have been opened during The supply of various kinds of SQM OF GLA 2010-2018 with a total of GLA of 550,000 entertainment and leisure services is sq m. increasing. For example, cinemas Finnki- Before the year 2022, there will no and Cinamon, children adventure parks be six new shopping centres that are HopLop and Duudson Park, virtual reality now being planned or constructed in the park Pikseli Arcade, indoor Surf Beach, Helsinki metropolitan area. These new indoor skydiving Fööni and climbing centre centres will add 264,000 sqm of GLA. Irti Maasta help shopping centres to attract Finnish shopping centres perform new customers. strongly year after year, with both the Also public health centres and libraries number of visitors and total sales continu- increasingly wish to be located in the busy ing to increase. The total number of shop- shopping centres. ping centre visitors increased by 2.2 % and Sources: Finnish Council of Shopping Centers sales grew by 5.2 % in 2017. The share of shopping centre sales of the total retail

City of Helsinki / Tero Pajukallio

Photo: Chapter 3 Helsinki metropolitan area

Northern Europe’s Next Capital of Cool Rebecca Thandi Norman, Fathom Travel Award winner of the Best Travel Blogs and Websites of 2018.

Photo: Flow Festival / Matti Pyykkö Sources Finnish Council of ShoppingCenters and wealthy Helsinki isafast growing Shopping centres 2017 Foreign visitors 2017 F&B sales 2016 Retail sales 2016 Disposable income percapita 2016 Students 2016(highereducation) Workplaces 2015 GDP percapita 2015 Population 2017 New shoppingcentre space during2018-2021 Key facts Helsinki metropolitan area

: Statistics Finland,Citiesof Helsinki, Vantaa andEspoo,

capital city Helsinki region =Metropolitan area andsurrounding 10commuter municipalities Helsinki metropolitan area =Citiesof Helsinki,Vantaa, Espoo andKauniainen 6 newcentres orextensions withatotal GLAof over 264,000sqm 34 shoppingcentres withatotal GLAof 910,000sqm 4.3 million(+14%from 2016)52%of total Finlandvisitors EUR 2,200billion36%of total Finland EUR 11,900billion26%of total Finland EUR 25,20011%above theFinlandaverage 89,400 607,900 52,000 EUR48%above theEUaverage, 36%above theFinlandaverage 1.15 million(+16,500from 2016),21%of total Finland

Photo: Aleksanterin katu, Helsinki / Helsinki Marketing no. 1retail destinationof thecountry The economic centre andthe The GlobalStartup Ecosystem Report 2018 Sources: Statistics Finland,Citiesof Helsinki,Vantaa and Espoo, FinnishCouncil of ShoppingCenters, UIAstatistics, Retail salesper capita Finland global tech scene to Helsinkievery year. startup event Slushisbringingtogether the is recognized globally. in theNordics. currently themostpopularcongress city visitors in 2017 than ever before, and is is 11%higherthanthenationalaverage. inhabitants isEUR25,200percapita, which % of thenationalGDP. The metropolitan area accounts for 37 region inretail andbusiness Helsinki isthemostdynamic F&Bsales per capitaFinland Retail salesper capita HMA F&Bsales par capitaHMA The Helsinki’s startup ecosystem Helsinki attracted more congress The average disposable income of the RETAILF&BAND SALES PERCAPITA 2016, EUR World’s leading 1 120 1 960 ping centre salesinFinland. sales equals54%of thetotal shop- centres are located inthearea andtheir above thenationalaverage. EUR 12,000percapita, whichis33% and Ainoa. shopping centre extensions of IsoOmena increased by 8.2%in2017,boosted by Shopping centre sales retail salespercapita destination withhighest Most attractive retail More than30%of FinnishShopping Retail and restaurant sales equal over 8 290 Statistics Finland Statistics Source: of theregion 10 490 27% Retail salespercapita higher than than higher national average 75% higher than than higher F&B F&B sales percapita national average Helsinki metropolitan area // 18

Photo: Helsinki day / Lauri Rotko the demandfor new retail Rapid populationgrowth increases over thenext 5year period(+6%). 2017 andisexpected to increase by 80,500 million. Thepopulationgrew by 16,000in Finland, withacurrent populationof 1.2 the fastest growing cityregion in Helsinki metropolitan area isclearly More than20%of theFinland’s populationlive in thearea. 607,900 workplaces in 1.2 Population million in 2015 2018 and newtram linesare underplanning). connection, Western metro lineextension politan area (e.gtheairportRingRail Line years to supportthegrowth inthemetro- public transport developments in recent Municipalities have invested in several major 148,000 16,000 Annual growth new residents new residents over thenext 10 years(+15%) Helsinki metropolitan area // 19

Photo: Flow-festival / Jussi Hellsten Helsinki the most popular tourist destination in the country

Record volumes in tourism boost retail and restaurant sales. Foreign visitors in Finland spent an Helsinki has the busiest passenger sea TOP 10 COUNTRIES average of 318 euros per guest in 2017. port in Europe with 12.3 million FOREIGN VISITORS EXPENDITURES IN FINLAND 2017, EUR MILLION Shopping, restaurants and leisure is the passengers. Last year saw also a record largest expenditure among foreign visitors, number of cruise visitors. A total of 266 an average 53 % share of the total cruise ships visited Helsinki during the 2017 consumption. season, bringing 478,000 cruise visitors to Tourism enjoyed record growth in the city (16 % up from the previous year). 653 2017 with +14 % and grew faster than in The international airport has more 40 Copenhagen, Oslo and Stockholm. Now than 18 million annual passengers and the annually 4.3 million foreign travellers visit trac is growing fast, increasing by 10 % in 480 Helsinki, which is over 50 % of the total 2017. visits to Finland. The number of overnights grew with an increase of 14 % and the Russian overnight stays increased even by

37 % in 2017. 335 21 52

218 Visitors from Share of all retail, all countries spent restaurants & leisure 49 172 28 76 130 123 110 35 16 99 20 18 14 83 81 39 28 15 13 23 17 18 15 2.60billion € in Finland 50%of total expenditure Russia China Sweden Germany France Estonia Japan Spain USA UK

Culture and entertainment Restaurants Shopping Advance, Accommodation, Transport, Other

Helsinki metropolitan area // 20 Population = persons, GLA = sq m of Helsinki,Vantaa, Espoo; Colliers International Finland Sources: IN THEHELSINKIMETROPOLITAN AREA SHOPPING CENTREGLAANDPOPULATION ities for newretail brands. space to themarket oering great possibil- some 264,000sqmof modernretail starting soon.Theseprojects willadd extensions are eitherunderconstruction or Six newshoppingcentre projects and opportunities for retail brands centre projects o er new Large shopping 0 200 000 400 000 600 000 800 000 1980 1 000 1 200000 1981 1982 Finnish Council of ShoppingCenters; Statistics Finland; Cities 1983 1984 1985 1986 Total shoppingcentre GLA 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Population growth 2000

2001 start later in2018. Construction of Kivistö centre isexpected to located next to metro ortrain stations. include The mainprojects underconstruction 2002 2003 2004 2005 Redi, Tripla, Hertsiand 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Lippulaiva, all 2016 2017 2018 2019 2020 2021

Photo: Forum shopping centre

Helsinki metropolitan area

Helsinki metropolitan Shopping centres area population

Shopping centre Kivistö Jumbo + Flamingo Development project Ring road III 1.15 Dixi million Retail park area Petikko

Myyrmanni Tammisto Porttipuisto

Malmin Nova Kaari Malmintori

Ristikko Ring road I Sello Lommila Itis

Easton Tripla Arabia Columbus Espoontori Redi Entresse Hertsi Ainoa

Iso Omena Ruoholahti Liila Lippulaiva Suomenoja City Centre 0 5 10 km Kiasma museum 4 million Central tourists in Railway Helsinki 2017 Sokos Station

New Amosrex museum Tuomiokirkko Citycenter Ateneum museum Kamppi

Forum Keskuskatu Kluuvi

Aleksanterinkatu

Stockmann Galleria Esplanad

Pohjoisesplanadi Helsinki city centre Market square Esplanadi Shopping district

Shopping centre Department store 0 100 200 m Prime high street development projects inHelsinki Largest shoppingcentres and Helsinki citycentre shoppingcentres Outside Helsinkicitycentre Lippulaiva, opening2021(redevelopment) Kivistö, opening2020 Redi, openingSep2018 Tripla, opening2019 + extension, opening2019 Ainoa Myyrmanni Kaari Iso Omena Itis Sello Jumbo Kluuvi Galleria Esplanad Citycenter Forum Kamppi

ae 07 U ilo Footfall 2017, million Sales 2017, EURmillion 420 250 328 397 218 43 114 153 215 317 28 97 - - - - 43 24 14 15 18 4 12 12 3 8 5 7 - - - - Leasable retail area, sqm +20,000 40,000 40,000 60,000 85,000 85,000 24,000 55,000 29,400 79,000 84,700 97,900 47,400 10,600 31,800 34,100 8,000 Sales /Leasable retail area Source: FinnishCouncil of ShoppingCenters Source: FinnishCouncil of ShoppingCenters 4,800 4,900 3,900 4,500 4,200 3,700 4,100 5,400 5,500 4,100 2,600 7,300 - - - - Sales /Visitor 28 35 23 19 19 16 31 15 15 6 - 7 7 - - -

Photo: Länsisatama, Jätkäsaari / Antti Pulkkinen Photo: Jack The Rooster / Laura Vanzo

Chapter 4 Tampere Tampere is the second largest city region in Finland and the largest inland city in the Nordic countries

Tampere is a growing university city and one Finland as well as the rst tramway of the of the fastest growing urban areas in city are under construction. In the future, Finland. new skyline is growing fast around Tampere The city centre is developing fast. railway station with new buildings to cover Currently, the largest multipurpose arena in the railway tracks.

Photo: Sokos Torni / Aki Rask Key facts Tampere Population 2017 City 231,900 (whole city region 402,500) Workplaces 2015 115,700 Students 2016 (higher education) 30,600 Disposable income per capita 2016 EUR 22,200 Photo: Hiedanranta sustainable smart city attitude / Laura Vanzo Retail sales 2016 EUR 1,980 billion F&B sales 2016 EUR 0,4 million Shopping centres 2017 7 shopping centres with a total GLA of 224,000 sq m

Sources: Statistics Finland, Finnish Council of Shopping Centers

Tampere region = Tampere and surrounding nine commuter municipalities Tampere region Elo Shopping centres Elovainio Shopping centre Retail park area Lielahtikeskus City centre (Ratina, Koskikeskus, Tullintori)

Kaleva

Veska Turtola Tampere region population Partola Lahdesjärvi Duo 402,500

Sales 2017, Footfall 2017, Leasable retail area, EUR million million sq m Ideapark 250 7 91,700 Ratina, opened in 2018 - - 53,000 Koskikeskus 132 6 28,600 Forecasted 5 year population growth Elo 51 2 16,700 16,400 new inhabitants (4.1 %) Duo 64 5 12,200 Tullintori 21 3 9,900 Ideapark Lielahtikeskus 13 1 11,400

0 5 10 km

Finlayson Travel & Service factory area Centre -project

Koskipuisto Stockmann Tram under construction Central Market Hall Square Hämeenkatu Railway station Tullintori Sokos

Koskikeskus

Laukontori Tampere Hall

Central Deck & Arena-project

Tampere city centre Bus station University Shopping district Ratina campus area Tampere Stadion Shopping centre Department store

Prime high street

0 200100m Chapter 5 Turku Aura river & restaurant Pinella / Visit Turku Pinella / Visit & restaurant river Aura Photo: Turku is the third largest city region in Finland

Turku is the oldest city in the whole country the market square, Aura riverfront with and the most important cultural and many restaurants, Old Town and the univer- business hub of the Western Finland. sity campus area. The municipality has an The city centre is located at the mouth ambitious new vision for developing the city of the Aura River. The lively urban centre centre and giving a boost for the future of consists of the commercial district around the whole Turku region.

Key facts Turku Photo: Turku Cathedral & city of Turku / Suomen Ilmakuvat Population 2017 189,700 (whole city region 402,500) Workplaces 2015 95,400 Students 2016 (higher education) 29,400 Disposable income per capita 2016 EUR 21,600 Retail sales 2016 EUR 1,620 billion F&B sales 2016 EUR 0.3 billion Shopping centres 2017 3 shopping centres with a total GLA of 145,300 sq m

Sources: Statistics Finland, Finnish Council of Shopping Centers

Photo: Market square / Seilo Ristimäki Turku region = Turku and surrounding ten commuter municipalities Airport Turku region Mylly Shopping centres Raisio Shopping centre town centre Kuninkoja Retail park area

Länsikeskus Turku region population City centre 328,100 (Hansa Block)

Skanssi Biolaakso Forecasted 5 year population growth 7,400 new inhabitants (2.2 %)

Sales 2017, Footfall 2017, Leasable retail area, EUR million million sq m Krossi Mylly 223 6 58,100 Piispanristi Hansa 227 12 49,000 Skanssi 123 3 38,000 Kaarina town centre 0 5 10 km

Bus Logomo station event venue

Turku University district Railway Turku station Concert Hall

Sokos Turku Cathedral

Aurakatu Market Square Yliopistonkatu Hansa Block Eerikinkatu Forum Block Library KOP Market Turku city centre hall Shopping district

Shopping centre Aurajoki Department store

Prime high street Turku city 0 100200 m theathre Establishment facts

Entering the market tenants, often between 5-10 years. If not Opening hours Retail opening agreed, tenants don’t have an automatic hours regulation Easiest way to enter the Finnish right for lease renewal. Retail opening hours regulation is the most market is through direct ownership. Usually the rent is based on the liberal in Europe. All shops can set their Franchising and via shop-in-shops are leasable area. Separate maintenance cost opening hours freely. Finnish shopping most other ways, but the franchise market is not and marketing fee are usually charged in centres usually have common minimum as mature as in other Europe. There is no shopping centres. The use of turnover rent opening hours agreed in the leases. Typical liberal in Europe restrictions for foreign companies for with a minimum base rent is common in minimum opening hours for shopping buying or renting property in Finland. shopping centres. centres in the Helsinki metropolitan area are Rents are usually adjusted annually 10:00 a.m. – 21.00 p.m. Mon-Fri, 10:00 Rental conditions according to the cost of living index. The a.m. – 19:00 p.m. Sat and 12:00 a.m. – legislation gives parties high freedom to 18:00 p.m. Sun. Fixed lease terms are usually applied in the agree on all the terms and conditions shopping centres, with a typical mini- freely. mum xed term between 3-5 years. Longer terms usually apply for anchor

Photo: Helsinki Day at Kluuvi / Jussi Hellsten Modern Life! exhibition at HAM - Helsinki Art Museum / Leena Karppinen / Leena at HAM - Helsinki Art Museum exhibition Modern Life! Photo:

This publication is provided by the Finnish Council of Shopping Centres

It is an industry association bringing Further information on the Finnish shop- together the most prominent players in the ping centre industry, statistics and key Finnish shopping centre industry - retailers, gures for all the main shopping centres shopping centre owners, managers and can be found on the annual publication. consultants. The Finnish Shopping Centres 2018 www.kauppakeskusyhdistys. /en