In boom times, anyone can run a shop, but that is no longer the case, says Guido Pärnits, Head of Ülemiste Centre. The centre’s August turnover did exceed the level of the record year 2023, and in the third quarter turnover, the number of purchases and the number of visits all grew, but shoppers are holding on to their money more tightly and increasingly spending it abroad.
Ülemiste Centre’s turnover this August was almost one percent higher than in August 2023, the year in which the centre achieved the best annual turnover in its history. Pärnits calls the difference small but significant: “We are getting close to the level of the record year.” In his view, the third quarter as a whole was strong, and August and September were particularly good months, as turnover, the number of purchases and the number of visits all grew. In September, turnover growth came mainly from an increase in the number of purchases, while the average purchase value remained almost the same as last year.
However, not all product groups grew. Clothing, electronics and entertainment, for example, performed more strongly, while sports goods and home and interior goods declined. According to Pärnits, sports goods are this year’s biggest loser. “It’s a bit of a mystery to me. Perhaps the health and fitness boom once pushed sales so high that we have now simply returned to a sensible level,” he added.
Shoppers weigh their choices carefully
In Pärnits’s view, wage growth has increased people’s purchasing power, but many prefer to hold on to their money. “The retailer’s task is to create a situation in which people want to bring that money into the shop. That means the right price, good service, the right product range and enough stock,” he explained.
This year’s Emor survey also shows that shoppers weigh their choices carefully. Almost four in five residents of Tallinn and Harju County research information and prices online before a larger purchase, and three in five wait for special offers.
According to Pärnits, as shoppers become more selective, the stronger shops stand out from the rest more and more clearly. “Now that the market has come through the downturn and is growing again, even more emphasis must be placed on professionalism to keep customers and win new ones. There is someone and something worth the effort,” said Pärnits.
Retailers are not competing only with neighbouring centres, as people in Estonia are travelling more than before and also spending money abroad. According to Pärnits, local shops must be as good as the shops in the largest centres of European capitals if the money is to stay in Estonia.
New brands are coming to Ülemiste
Ülemiste Centre gained several new tenants in late summer and autumn. The American clothing brand GAP opened its doors, Douglas moved into a larger store and Pavlova café joined the centre. At the beginning of November, the DAO buffet restaurant will open on 800 square metres, and several other new additions are coming before Christmas.
According to the head of the centre, the arrival of a well-known brand like GAP shows that the Estonian market is worth it. He hopes this will encourage others to bring new brands to Estonia as well. “A shopping mall must keep renewing itself, and these renewals must be based on what visitors really want,” said Pärnits.
According to Pärnits, interest in Ülemiste Centre has for some time exceeded what the centre is able to offer. Some brands have postponed their entry into Estonia because they want to open their first store specifically at Ülemiste, but suitable vacant space is not always available. That is why expansion is one of the centre’s next big goals.
This year, the centre had the most visitors in July and August, and more purchases were made in August than in any other month this year. Pärnits expects the centre’s turnover and visitor numbers to grow in the fourth quarter as well, as the economy and people’s incomes support it. “Retailers once again have the opportunity to bring more customers into their shops, but simply waiting won’t make it happen,” said the Head of Ülemiste Centre.
