Director of Ülemiste Center Guido Pärnits gives a positive assessment of the first-quarter 2026 results: the low point of retail is behind us, the mall has maintained stable footfall, and it is looking to the future with confidence. But the customer has grown more discerning, and retailers have to work increasingly hard to meet expectations.
The first-quarter results from Tallinn’s shopping malls confirm that the downward trend has stopped. According to Pärnits, there are fewer and fewer figures in the red, and the current stable situation is a sign that the worst is behind us.
“Ülemiste Center sees an average of 20,000 visitors a day. Despite the Rail Baltica construction works, which have temporarily made access to the whole area more difficult, we have managed to maintain this level of footfall,” Pärnits said. In his view, this shows that the customer still comes to the centre out of habit, because there is something there that interests them.
Content is the new location
According to the Director of Ülemiste Center, what really matters today, more than ever, is the content of the shopping mall. Not the location, not the square metres, but what is actually for sale in the store, what services and ways to spend time the mall offers in a broader sense, and how well all of this resonates with people.
“The customers are smart. They know what they want, and if they don’t find it, they head to an online shop or go abroad. Good products and service are what brings people in the first time; quality service is what brings them back,” Pärnits said.
The recognition that Estonian residents need a broader choice of brands and products has reached retailers, too. The potential of the Estonian market is increasingly being recognised. A good example is H&M, which underwent a refurbishment last year and opened a flagship store at Ülemiste Center based on a new concept. It is precisely thanks to this that, this spring, for the first time in more than seven years, we saw a special H&M collection on sale in Estonia, created in collaboration with Stella McCartney. “These collections only go to the very best stores around the world. It is a sign that this region is believed in – and that investment here pays off,” Pärnits said.
The Director of Ülemiste Center added that retail will always remain the core of the mall, but entertainment, restaurants, cafés and events support it and give visitors a reason to come simply to spend time. Whether that is a fan day for the TV series Papsid, a Tesla showcase or a free ice cream day.
Challenges remain, but the mood has shifted
Pärnits acknowledges that the start of the year was difficult, as historically high electricity prices essentially ate up the positive effect of the income tax reform, while geopolitical uncertainty continues to weigh on consumer confidence. According to Pärnits, people have to learn to shop again. Even if macroeconomic indicators are improving, this kind of adjustment takes time.
“The toughest times are definitely behind us. The bigger picture for retail is excitingly positive,” Pärnits said. “Life goes on, and Estonian retail goes on with it. By summer, trams will once again be running to the Ülemiste area, and I believe this too will give retailers ever more confidence that the second half of the year will be stable.”
