Retailing in Finland
Euromonitor International's Retailing in Finland examines whether recent high growth rates can be sustained in an economic downturn. Growth has been boosted by richer consumers spending more and some companies’ decision to sell a wider range of non-food products. Rising sales have supported expansion into new markets, new store formats and moves into private label products. However, the economic downturn has set some of these strategies back, this analysis looks at whether grocery retailers will continue to enjoy similar rates of growth in the future.
Tables: 192 | Publication date: Mar 2009
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Product coverage
Non-store retailing; Store-based retailing
Executive summary
2008: the year the boom halted?
Retailing in Finland continued to perform exceptionally well in 2008; a trend which continued throughout the beginning of the 21st Century. While during the summer the forecast still looked very bright, developments during the second part of the year cast a dark cloud over the next few years. In December 2008, it still seemed that the crucial Christmas trade would perform well, yet exceptionally many retailers started offering discounts before Christmas, and not just between Christmas and New Year, which used to be the national standard.
Shopping malls: good or bad?
The boom brought with it interesting debates. One of these in 2008, especially during the summer, was the expected growth of selling space in the country. According to an estimate from the Ministry of the Environment (which in Finland is responsible for regional planning) it seemed that the amount of planned selling space in out-of-centre shopping malls in particular would grow strongly during the forecast period. The findings led to criticism from people who were afraid that urban shopping would lose out to less ecological shopping, which demands a car. As the economic forecast grew more pessimistic towards the end of the year, it looked like the debate was already forgotten, and there was more fear about whether consumers would shop at all, rather than where this would take place.
No major changes in the competitive environment
Retailing in Finland remained relatively stable, with no significant new market players entering the country in 2008. The market is largely dominated by a few domestic giants, which are prevalent in various channels; first and foremost Kesko Oyj and S Group. Both are also increasingly searching for growth in neighbouring markets. On the other hand, the arrival of foreign-owned retailers such as Lidl Suomi Ky and H & M Hennes & Mauritz Oy increased competition, product availability and generally benefited Finnish consumers.
Non-store retailing remains marginal, but growth expectations are high
Non-store retailing remains marginal in Finland, especially vending and direct selling. Homeshopping is losing sales to internet retailing, but it is generally seen that whilst Finland is a highly computer-literate country, internet retailing has not become as popular as was expected several years ago. A reason behind this is that Finnish companies are generally accused of not yet really understanding how internet business should be carried out, which was to the benefit of international operators.
Slower growth expected
It is expected that growth will slow somewhat during the forecast period compared with the boom years. The general expectation in 2008 was that the next two or three years would prove harder for retailers, while growth was expected to accelerate again towards 2013. Much depends on the growth in unemployment, which would limit consumers’ purchasing power. The decrease in VAT on food in late 2009 and other tax incentives are, however, expected to have a positive impact on retailing.
Table of contents
RETAILING IN FINLAND : MARKET INSIGHT
EXECUTIVE SUMMARY
2008: the year the boom halted?
Shopping malls: good or bad?
No major changes in the competitive environment
Non-store retailing remains marginal, but growth expectations are high
Slower growth expected
KEY TRENDS AND DEVELOPMENTS
Recession might endanger the strong growth
Breakthrough of private label in grocery retail?
Debate on urban versus out-of-town shopping
Will internet retailing finally become significant?
Expected liberalisation of shopping hours
MARKET INDICATORS
Table 1 Employment in Retailing 2003-2008
MARKET DATA
Table 2 Sales in Retailing by Sector: Value 2003-2008
Table 3 Sales in Retailing by Sector: % Value Growth 2003-2008
Table 4 Sales in Retailing by Grocery vs Non-Grocery 2005-2008
Table 5 Sales in Store-Based Retailing by Sector: Value 2003-2008
Table 6 Sales in Store-Based Retailing by Sector: % Value Growth 2003-2008
Table 7 Sales in Non-store Retailing by Sector: Value 2003-2008
Table 8 Sales in Non-store Retailing by Sector: % Value Growth 2003-2008
Table 9 Retailing Company Shares: % Value 2004-2008
Table 10 Grocery Retailers Company Shares: % Value 2004-2008
Table 11 Grocery Retailers Brand Shares: % Value 2005-2008
Table 12 Non-Grocery Retailers Company Shares: % Value 2004-2008
Table 13 Non-Grocery Retailers Brand Shares: % Value 2005-2008
Table 14 Non-store Retailing Company Shares: % Value 2004-2008
Table 15 Non-store Retailing Brand Shares: % Value 2005-2008
Table 16 Forecast Sales in Retailing by Sector: Value 2008-2013
Table 17 Forecast Sales in Retailing by Sector: % Value Growth 2008-2013
Table 18 Forecast Sales in Store-Based Retailing by Sector: Value 2008-2013
Table 19 Forecast Sales in Store-Based Retailing by Sector: % Value Growth 2008-2013
Table 20 Forecast Sales in Non-store Retailing by Sector: Value 2008-2013
Table 21 Forecast Sales in Non-store Retailing by Sector: % Value Growth 2008-2013
APPENDIX
Operating environment
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - FINLAND
ALKO OY - RETAILING - FINLAND
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Alko Oy: Key Facts
Summary 3 Alko Oy: Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
COMPETITIVE POSITIONING
Summary 4 Alko Oy: Competitive Position 2008
ARCTECHO OY - RETAILING - FINLAND
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Arctecho Oy: Key Facts
Summary 6 Arctecho Oy: Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
COMPETITIVE POSITIONING
Summary 7 Arctecho Oy: Competitive Position 2008
CARLSON OY - RETAILING - FINLAND
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Carlson Oy: Key Facts
Summary 9 Carlson Oy: Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
COMPETITIVE POSITIONING
Summary 10 Carlson Oy: Competitive Position 2008
INSTRU OPTIIKKA OY - RETAILING - FINLAND
STRATEGIC DIRECTION
KEY FACTS
Summary 11 Instru Optiikka Oy: Key Facts
Summary 12 Instru Optiikka Oy: Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
COMPETITIVE POSITIONING
Summary 13 Instru Optiikka Oy: Competitive Position 2008
KESKO OYJ - RETAILING - FINLAND
STRATEGIC DIRECTION
KEY FACTS
Summary 14 Kesko Oyj: Key Facts
Summary 15 Kesko Oyj: Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
Summary 16 Kesko Oyj: Private Label Portfolio
COMPETITIVE POSITIONING
Summary 17 Kesko Oyj: Competitive Position 2008
LIDL SUOMI - RETAILING - FINLAND
STRATEGIC DIRECTION
KEY FACTS
Summary 18 Lidl Suomi Ky: Key Facts
Summary 19 Lidl Suomi Ky: Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
COMPETITIVE POSITIONING
Summary 20 Lidl Suomi Ky: Competitive Position 2008
PUUKESKUS OY - RETAILING - FINLAND
STRATEGIC DIRECTION
KEY FACTS
Summary 21 Puukeskus Oy: Key Facts
Summary 22 Puukeskus Oy: Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
COMPETITIVE POSITIONING
Summary 23 Puukeskus Oy: Competitive Position 2008
RAUTAKIRJA OY - RETAILING - FINLAND
STRATEGIC DIRECTION
KEY FACTS
Summary 24 Rautakirja Oy: Key Facts
Summary 25 Rautakirja Oy: Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
Summary 26 Rautakirja Oy: Private Label Portfolio
COMPETITIVE POSITIONING
Summary 27 Rautakirja Oy: Competitive Position 2008
S GROUP - RETAILING - FINLAND
STRATEGIC DIRECTION
KEY FACTS
Summary 28 S Group: Key Facts
Summary 29 S-Group: Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
Summary 30 S Group: Private Label Portfolio
COMPETITIVE POSITIONING
Summary 31 S Group: Competitive Position 2008
STARKKI OY AB - RETAILING - FINLAND
STRATEGIC DIRECTION
KEY FACTS
Summary 32 Starkki Oy Ab: Key Facts
Summary 33 Starkki Oy Ab: Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
COMPETITIVE POSITIONING
Summary 34 Starkki Oy Ab: Competitive Position 2008
STOCKMANN OYJ ABP - RETAILING - FINLAND
STRATEGIC DIRECTION
KEY FACTS
Summary 35 Stockmann Oyj Abp: Key Facts
Summary 36 Stockmann Oyj Abp: Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
Summary 37 Stockmann Oyj Abp: Private Label Portfolio
COMPETITIVE POSITIONING
Summary 38 Stockmann Oyj Abp: Competitive Position 2008
SUOMEN LäHIKAUPPA OY - RETAILING - FINLAND
STRATEGIC DIRECTION
KEY FACTS
Summary 39 Suomen Lähikauppa Oy: Key Facts
Summary 40 Suomen Lähikauppa Oy: Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
Summary 41 Suomen Lähikauppa Oy: Private Label Portfolio
COMPETITIVE POSITIONING
Summary 42 Suomen Lähikauppa Oy: Competitive Position 2008
TIIMARI OYJ ABP - RETAILING - FINLAND
STRATEGIC DIRECTION
KEY FACTS
Summary 43 Tiimari Oyj Abp: Key Facts
Summary 44 Tiimari Oyj Abp: Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
COMPETITIVE POSITIONING
Summary 45 Tiimari Oyj Abp: Competitive Position 2008
TOKMANNI OY - RETAILING - FINLAND
STRATEGIC DIRECTION
KEY FACTS
Summary 46 Tokmanni Oy: Key Facts
Summary 47 Tokmanni Oy: Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
COMPETITIVE POSITIONING
Summary 48 Tokmanni Oy: Competitive Position 2008
YLIOPISTON APTEEKKI OY - RETAILING - FINLAND
STRATEGIC DIRECTION
KEY FACTS
Summary 49 Yliopiston Apteekki Oy: Key Facts
Summary 50 Yliopiston Apteekki Oy: Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
COMPETITIVE POSITIONING
Summary 51 Yliopiston Apteekki Oy: Competitive Position 2008
HYPERMARKETS IN FINLAND
OVERVIEW
SECTOR DATA
Table 22 Hypermarkets: Value Sales, Outlets and Selling Space 2003-2008
Table 23 Hypermarkets: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 24 Hypermarkets Company Shares by Value 2004-2008
Table 25 Hypermarkets Brand Shares by Value 2005-2008
Table 26 Hypermarkets Brand Shares by Outlets 2005-2008
Table 27 Hypermarkets Brand Shares by Selling Space 2005-2008
Table 28 Hypermarkets Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 29 Hypermarkets Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
SUPERMARKETS IN FINLAND
HEADLINES
OVERVIEW
SECTOR DATA
Table 30 Supermarkets: Value Sales, Outlets and Selling Space 2003-2008
Table 31 Supermarkets: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 32 Supermarkets Company Shares by Value 2004-2008
Table 33 Supermarkets Brand Shares by Value 2005-2008
Table 34 Supermarkets Brand Shares by Outlets 2005-2008
Table 35 Supermarkets Brand Shares by Selling Space 2005-2008
Table 36 Supermarkets Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 37 Supermarkets Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
DISCOUNTERS IN FINLAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 38 Discounters: Value Sales, Outlets and Selling Space 2003-2008
Table 39 Discounters: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 40 Discounters Company Shares by Value 2004-2008
Table 41 Discounters Brand Shares by Value 2005-2008
Table 42 Discounters Brand Shares by Outlets 2005-2008
Table 43 Discounters Brand Shares by Selling Space 2005-2008
Table 44 Discounters Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 45 Discounters Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
CONVENIENCE STORES IN FINLAND
HEADLINES
OVERVIEW
SECTOR DATA
Table 46 Convenience Stores: Value Sales, Outlets and Selling Space 2003-2008
Table 47 Convenience Stores: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 48 Convenience Stores Company Shares by Value 2004-2008
Table 49 Convenience Stores Brand Shares by Value 2005-2008
Table 50 Convenience Stores Brand Shares by Outlets 2005-2008
Table 51 Convenience Stores Brand Shares by Selling Space 2005-2008
Table 52 Convenience Stores Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 53 Convenience Stores Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
FORECOURT RETAILERS IN FINLAND
HEADLINES
OVERVIEW
SECTOR DATA
Table 54 Forecourt Retailers: Value Sales, Outlets and Selling Space 2003-2008
Table 55 Forecourt Retailers: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 56 Forecourt Retailers Company Shares by Value 2004-2008
Table 57 Forecourt Retailers Brand Shares by Value 2005-2008
Table 58 Forecourt Retailers Brand Shares by Outlets 2005-2008
Table 59 Forecourt Retailers Brand Shares by Selling Space 2005-2008
Table 60 Forecourt Retailers Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 61 Forecourt Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
MIXED RETAILERS IN FINLAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 62 Mixed Retailers: Value Sales, Outlets and Selling Space 2003-2008
Table 63 Mixed Retailers: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 64 Mixed Retailers Company Shares by Value 2004-2008
Table 65 Mixed Retailers Brand Shares by Value 2005-2008
Table 66 Mixed Retailers Brand Shares by Outlets 2005-2008
Table 67 Mixed Retailers Brand Shares by Selling Space 2005-2008
Table 68 Mixed Retailers Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 69 Mixed Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
HEALTH AND BEAUTY SPECIALIST RETAILERS IN FINLAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 70 Health and Beauty Retailers: Value Sales, Outlets and Selling Space 2003-2008
Table 71 Health and Beauty Retailers: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 72 Health and Beauty Retailers Company Shares by Value 2004-2008
Table 73 Health and Beauty Retailers Brand Shares by Value 2005-2008
Table 74 Health and Beauty Retailers Brand Shares by Outlets 2005-2008
Table 75 Health and Beauty Retailers Brand Shares by Selling Space 2005-2008
Table 76 Health and Beauty Retailers Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 77 Health and Beauty Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
CLOTHING AND FOOTWEAR SPECIALIST RETAILERS IN FINLAND
HEADLINES
OVERVIEW
SECTOR DATA
Table 78 Clothing and Footwear Retailers: Value Sales, Outlets and Selling Space 2003-2008
Table 79 Clothing and Footwear Retailers: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 80 Clothing and Footwear Retailers Company Shares by Value 2004-2008
Table 81 Clothing and Footwear Retailers Brand Shares by Value 2005-2008
Table 82 Clothing and Footwear Retailers Brand Shares by Outlets 2005-2008
Table 83 Clothing and Footwear Retailers Brand Shares by Selling Space 2005-2008
Table 84 Clothing and Footwear Retailers Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 85 Clothing and Footwear Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
FURNITURE AND FURNISHINGS STORES IN FINLAND
HEADLINES
OVERVIEW
SECTOR DATA
Table 86 Furniture and Furnishings Stores: Value Sales, Outlets and Selling Space 2003-2008
Table 87 Furniture and Furnishings Stores: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 88 Furniture and Furnishings Stores Company Shares by Value 2004-2008
Table 89 Furniture and Furnishings Stores Brand Shares by Value 2005-2008
Table 90 Furniture and Furnishings Stores Brand Shares by Outlets 2005-2008
Table 91 Furniture and Furnishings Stores Brand Shares by Selling Space 2005-2008
Table 92 Furniture and Furnishings Stores Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 93 Furniture and Furnishings Stores Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
DIY, HOME IMPROVEMENT AND GARDEN CENTRES IN FINLAND
HEADLINES
OVERVIEW
SECTOR DATA
Table 94 DIY, Home Improvement and Garden Centres: Value Sales, Outlets and Selling Space 2003-2008
Table 95 DIY, Home Improvement and Garden Centres: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 96 DIY, Home Improvement and Garden Centres Company Shares by Value 2004-2008
Table 97 DIY, Home Improvement and Garden Centres Brand Shares by Value 2005-2008
Table 98 DIY, Home Improvement and Garden Centres Brand Shares by Outlets 2005-2008
Table 99 DIY, Home Improvement and Garden Centres Brand Shares by Selling Space 2005-2008
Table 100 DIY, Home Improvement and Garden Centres Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 101 DIY, Home Improvement and Garden Centres Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
ELECTRONICS AND APPLIANCE SPECIALIST RETAILERS IN FINLAND
HEADLINES
OVERVIEW
SECTOR DATA
Table 102 Electronics and Appliance Specialist Retailers: Value Sales, Outlets and Selling Space 2003-2008
Table 103 Electronics and Appliance Specialist Retailers: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 104 Electronics and Appliance Specialist Retailers Company Shares by Value 2004-2008
Table 105 Electronics and Appliance Specialist Retailers Brand Shares by Value 2005-2008
Table 106 Electronics and Appliance Specialist Retailers Brand Shares by Outlets 2005-2008
Table 107 Electronics and Appliance Specialist Retailers Brand Shares by Selling Space 2005-2008
Table 108 Electronics and Appliance Specialist Retailers Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 109 Electronics and Appliance Specialist Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
LEISURE AND PERSONAL GOODS SPECIALIST RETAILERS IN FINLAND
HEADLINES
OVERVIEW
SECTOR DATA
Table 110 Leisure and Personal Goods Specialist Retailers: Value Sales, Outlets and Selling Space 2003-2008
Table 111 Leisure and Personal Goods Specialist Retailers: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 112 Leisure and Personal Goods Specialist Retailers Company Shares by Value 2004-2008
Table 113 Leisure and Personal Goods Specialist Retailers Brand Shares by Value 2005-2008
Table 114 Leisure and Personal Goods Specialist Retailers Brand Shares by Outlets 2005-2008
Table 115 Leisure and Personal Goods Specialist Retailers Brand Shares by Selling Space 2005-2008
Table 116 Leisure and Personal Goods Specialist Retailers Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 117 Leisure and Personal Goods Specialist Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
VENDING IN FINLAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 118 Vending: Value 2003-2008
Table 119 Vending: % Value Growth 2003-2008
Table 120 Vending Company Shares by Value 2004-2008
Table 121 Vending Brand Shares by Value 2005-2008
Table 122 Vending Forecasts: Value 2008-2013
Table 123 Vending Forecasts: % Value Growth 2008-2013
HOMESHOPPING IN FINLAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 124 Homeshopping: Value 2003-2008
Table 125 Homeshopping: % Value Growth 2003-2008
Table 126 Homeshopping Company Shares by Value 2004-2008
Table 127 Homeshopping Brand Shares by Value 2005-2008
Table 128 Homeshopping Forecasts: Value 2008-2013
Table 129 Homeshopping Forecasts: % Value Growth 2008-2013
INTERNET RETAILING IN FINLAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 130 Internet Retailing: Value 2003-2008
Table 131 Internet Retailing: % Value Growth 2003-2008
Table 132 Internet Retailing Company Shares by Value 2004-2008
Table 133 Internet Retailing Brand Shares by Value 2005-2008
Table 134 Internet Retailing Forecasts: Value 2008-2013
Table 135 Internet Retailing Forecasts: % Value Growth 2008-2013
DIRECT SELLING IN FINLAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 136 Direct Selling: Value 2003-2008
Table 137 Direct Selling: % Value Growth 2003-2008
Table 138 Direct Selling Company Shares by Value 2004-2008
Table 139 Direct Selling Brand Shares by Value 2005-2008
Table 140 Direct Selling Forecasts: Value 2008-2013
Table 141 Direct Selling Forecasts: % Value Growth 2008-2013