The number of visitors to Finnish retail centers saw a growth of nearly seven percent in the second quarter of the current year, compared to the previous year. Similarly, the total sales increased nominally by 4.6% in the second quarter of this year compared to the same period in 2022. However, the growth rate slowed considerably in comparison to the first quarter of the year when the 2022 COVID-19 restrictions still impacted the numbers. The growth in total sales for the second quarter remained just over two percentage points lower than inflation.
Double-digit Growth in Beauty and Health Sales
Among the significant sectors within retail centers, the sales of beauty and health products achieved double-digit growth during the second quarter. The overall sales growth was also supported by the largest sector, daily goods and department stores, whose sales growth exceeded inflation and reached over eight percent. The sales of beauty and wellness services also experienced a significant boost, growing by over seven percent compared to the previous year.
The growth in sales for cafes and restaurants, which had soared in the beginning of the year, slowed down in April-June, reaching just under three percent. Similarly, the growth in fashion and accessory sales slowed, achieving a growth rate of 1.4% in the second quarter. On the other hand, sales of home decoration and supplies as well as entertainment and leisure services decreased in the second quarter of the current year compared to the same period of the previous year.
High Occupancy Rates in Major City Retail Centers
As of the end of June this year, the occupancy rate of retail center commercial spaces across the country averaged at 95.4%. In the capital region and other major cities, the occupancy rate slightly increased from the end of March and was over 96%. In smaller urban areas, the occupancy rate remained nearly unchanged and was slightly below 93% at the end of June.
"The visitor numbers for retail centers have shown positive development, and the range of services offered by these centers continues to attract people. Occupancy rates remain at a high level, and an occupancy rate exceeding 96% in both the capital region and other major cities can be considered quite promising," stated Jukka Vakula, Vice Chairman of the Finnish Council of Shopping Centers.
These results are based on the Finnish Council of Shopping Centers' sales and visitor index, collected by KTI Kiinteistötieto Oy. Sales and visitor data have been tracked since 2011. These indexes promote transparency in the Finnish retail center market and provide market information to support retail center management decisions. The dataset includes 51 retail centers. The comparable, like-for-like index excludes new centers and significant expansions and renovations.
HT
