Commercial Network Yhdistelma

A project part-financed by the European Union (European Regional Development Fund)within the BSR INTERREG III B Programme

Commercial Service Network Studies

Central Finland Region 2005

Pohjois-Savo Region 2006


Two regions in the centre of Finland


CF and P-S are the border line inside Finland:

- There are clear differencies between south/west and east/north

- E.g. population density, unemployment, and industrialization


Commercial Service Network Studies

• Studies have been carried out in Pohjois-Savo and in Central Finland by the same specialist Mr Tuomas Santasalo

• Studies are almost alike. For the comparisons the different treshold values have been changed.


Common Background Phenomena

• Growth of special trade sales.• Special trade is concentrating in bigger cities. • Small municipalities have proportionally much

more retail in daily consumer goods. • Overall concentration of commercial services -

> large shopping centres -> long distances -> need of private/public transportation, parking places etc.


Basic Figures Central Finland• Population 268.000

(+)• Retail shops 1.300• Sales 1.400 milj.€ (2003)

• Special trade 73 %• Commercial centre

Jyväskylä (46% of all shops)

Pohjois-Savo• Population 250.000 (-)• Retail shops 1.200• Sales 1.400 milj.€ (2004)

• Special trade ca. 70 %• Commercial centres

Kuopio (37% of shops), Iisalmi, and Varkaus


Central Finland Pohjois-Savo

• 28 municipalities • Jyväskylä is the

population centre• Over 20.000 inh. only

in Äänekoski• 7 municipalities with

under 2000 inh.

• 23 municipalities• Kuopio is the

population centre• Over 20.000 inh. in

Siilinjärvi, Iisalmi and Varkaus

• 2 municipalities with under 2000 inh.


Retail Outlets• no real differences in the stucture of retail trade

outlets

• a clear difference between the number of department stores and the regional shopping centres in Kuopio (14 department stores, sales 192 M€) and Jyväskylä (7, sales 213 M€); – reason 1: department stores merge into big shopping

centres for daily consumption– reason 2: especially in the Jyväskylä city centre there are

many shopping centres of special trade built inside the existing buildings, i.e. plenty of small and medium-sized shops under one roof


• In CF there are more municipalities with very little commercial services

• In P-S there are only 2 municipalities with less than 10 shops, in CF there are 8.

• In P-S there are 3 commercial centres, Kuopio, Iisalmi and Varkaus; in CF there is only one, Jyväskylä

…yet the population, number of shops, and sales in the two regions are about the same.

-> CF is clearly more concentrated


• The network of commercial services is based on municipalities– every municipality has (so far) at least

basic commercial services– what happens to the network when the

municipalities merge?


Holiday Dwellers• The study has counted

purchasing power of holiday dwellers ->

In Pohjois-Savo it is about 2/3 of that of Central Finland– based on the number of

holiday cottages owned by outsiders:

– CF 33.000, P-S 30.000


Need of New Premises• The purchasing power and the need of new

premises more or less go hand in hand

• The need of new premises has been calculated based on the population forecasts and estimation of the purchasing power.

• In CF the need of new premises is strongly concentrating in Jyväskylä – the trend of centralization will strengthen itself


Expected need for floor space

by 2020

• Kuopio 37.700 m2 • Jyväskylä and Rural

Municipality of Jyväskylä 63.700 m2


- How can the small commercial centres be attractive and obtain purchasing power?

More customers: Population growth in the area or growing tourism.

Specialization. Maintaining enough and the right kind of selection:

- Groceries, Sports, Electrical appliances.- Pharmacy. Alko. - Fashion.

Small and Medium Sized Commercial Centres


In North Savo a supporting study

”Study on Areas of Attraction in

Pohjois-Savo 2006”

Data from

TNSGallup Ltd.


Study financed by Regional Council of

Pohjois-Savo, Savon Mediat Ltd,

and Kuopio Chamber of Commerce.

Confirms the results of

Santasalo Study.


Comparing Indexes of Attraction between Jyväskylä and Kuopio

• National Study on Areas of Attraction 2006• A simple question was asked: Where did you last

buy product/service X?• In the study Jyväskylä and Kuopio were compared

with 10 other towns: Helsinki, Tampere, Turku, Lahti, Pori, Rauma, Kokkola, Oulu, Varkaus, and Iisalmi.

• The next table shows the indexes of attraction


Comparing Indexes of Attraction

Jyväskylä and Kuopio were compared with 10 other towns:

Helsinki, Tampere, Turku, Lahti, Pori, Rauma, Kokkola, Oulu, Varkaus and Iisalmi.

The most appealing town of these 12 towns in each product group has been marked with yellow.

PRODUCT GROUP Jyväskylä Kuopio

Accommodation, free time 126 148 Tampere 152

Alcohol 128 110 Iisalmi 132

Bank visits 118 104

Books 172 130

Cafes and lunch restaurants 160 135

Cars, new 242 156 Iisalmi 300

Cars, used 198 132 Iisalmi 214

Cellular phones, phone subscriptions 182 148

Church visits 92 102

Clothes, children 199 156

Clothes, men 190 158

Clothes, women 191 160

Cosmetics 172 140

Cultural services 172 158 Helsinki 207

Detergents 144 115

DVD, CD, Video, Computer games 183 157

Eyeglasses, contact lenses 165 130

Furniture and furnishings 159 128 Iisalmi 162

Groceries during the week 123 106

Groceries during the week-end 137 110

Hairdressers, beauty services 123 108

Hardware, building 159 115

Home entertainment electronics 187 154

Home information technology 183 151

Household appliances 184 148

Insurance company visits 168 124 Iisalmi 170

Library visits 111 105

Movie theatres 191 149

Physical exercise services 115 108 Iisalmi 131

Private health services 194 159

Public schooling 141 122

Public health care 113 107

Restaurant services 156 136 Helsinki 162

Shoes, men 190 163

Shoes, women 195 161

Sport equipment 183 152

Travel bureaus 175 132

Travel targets in Finland 46 83 Tampere 340

Watches, jewellery 172 143

Work place (of the one earning most) 138 109

Index of Attraction of the City 159,43 132,80


How is the information used?

• Regional planning, e.g. where is need for large shopping centres

• Local planning, e.g. how can a small municipality help the companies keep their customers


Problems of the commercial services network

studies• The report of the study has been written in a

rather general level.• Some needed data does not exist – all the

aspects of the commercial services cannot be studied this way.

• The study is based on the data of each municipality.


Experiences of Central Finland• most usefull parts of the study have been the new

statistics• the trends showing in the study have been mostly

known• the biggest businesses make their own studies;

this study is meant for the municipal planning level• this study aims to be a neutral and independent

survey of the situation of the commercial service network; it is a long term planning tool which can be used together with the more biased studies made by the actors in business

Commercial Network Yhdistelma

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