Department stores continued to suffer from an identity crisis in Finland in 2021 having lost their place in the world slightly in the face of growing cross-category competition. In addition to the bankruptcy of the Anttila chain, the channel witnessed decreases in outlet numbers in most years of the review period, and at the same time a far more dramatic slide in value sales.
The iconic Stockmann Oyj Abp company continued to struggle in 2021 and entered a period of restructuring in Spring 2020 in order to avoid going into bankruptcy. This trouble was not caused by the COVID-19 pandemic in Finland, but the health crisis and associated decline in demand was the straw that broke the camel’s back for the leading player.
Sokos, the second biggest player in Finnish department stores, also recorded a sharp decline in retail current value sales in 2020 due to the impact of COVID-19 on consumer movement and spending. As with other players in this channel, the effects were felt most keenly in the first half of the year when the first outbreak of the pandemic hit Finland.
The COVID-19 pandemic was a poorly timed final blow for Stockmann and has accelerated the decline of a company that was already struggling over the review period. The company had planned to sell its Lindex brand over the forecast period, but these plans have now been shelved whilst the company focuses on short term measures to prevent bankruptcy in the aftermath of COVID-19.
Although Sokos is expected to remain one of the largest nationwide chains in department stores in the forecast period, the second place player does not have much room for further growth over the forecast period. Sokos is expected to focus more on renting premises to other players and its expansion into e-commerce in the coming years.
Of the three department store concepts in Finland, Carlson, with a handful of outlets in mid-sized towns in eastern Finland, and a few home improvement and gardening stores, is by far the least-known concept. As Carlson’s home region does not have the best growth potential in Finland, the company first expanded to the new Redi shopping centre in Helsinki, and later to Jyväskylä in Central Finland.
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Understand the latest market trends and future growth opportunities for the Department Stores industry in Finland with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
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Outlets selling mainly non-grocery merchandise and at least five lines in different departments, usually with a sales area of over 2,500 sq metres and arranged over several floors. Example brands include Macy’s, Bloomingdale’s, Marks & Spencer, Harrods, Sears, JC Penney, Takashimaya, Mitsukoshi, Daimaru, Karstadt, Rinascente.See All of Our Definitions
This report originates from Passport, our Department Stores research and analysis database.
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