Trends shaping our operating environment

Four global megatrends are impacting and reshaping the shopping centre industry also in the Nordics.

Urbanisation

  • Continued growth of cities and migration to urban areas


85% of Nordic citizens lived in urban areas in 20141)

Demographic changes

  • Higher level of education,rising income levels
  • Increasing life expectancy, ageing population
  • Smaller households


Life expectancy of women 83.8 years and men 79.7 years in the Nordic region2)

Digitalisation

  • Growth of digital services and ecommerce, high-impact disruptive technologies, automation
  •  Innovations in business, construction, infrastructure, consumer culture


62% of Nordic citizens aged 18–79 made online purchases in 20163)

Climate change and resource scarcity

  • Environmental and sustainability awareness


All Nordic capital cities aim to be carbon neutral by 20354)

How are the trends reshaping the shopping centre industry?

Increased density of urban structure

  • Mixed-use buildings
  • Walkability and cyclability

Polarisation of urban areas

  • Major growth concentrated in capital and metropolitan regions

Significance of public transportation

  • Increased development of public transportation infrastructure and its usability
  • Gradually diminishing role of passenger cars

Urban consumer lifestyle

  • Increased consumption of services, demand for services 24/7, call for convenient F&B services
  • Growing price and quality consciousness
  • Preference for sustainable products and services
  • Sharing economy: peer-to-peer based sharing of goods and services, diminishing role of owning
  • Call for sense of community

Accessibility of services

  • Call for convenience in everyday life, preference for ‘one stop shops’
  • Increasingly important role of location

Multichannel approach

  • Online and physical services complementing each other for optimal customer experience

Energy efficiency and aim for cleaner environment

  • Efficiency requirements e.g. for building and industrial sectors
  • Increased role of decentralised energy production (e.g. solar, wind, geothermal)
  • Sustainability and carbon neutrality objectives of cities
  • Emission reductions for cars
     


1) Source: Nordregio State of the Nordic Region 2016
2) Source: Nordic Council of Ministers: Nordic Statistics 2016
3) Source: Postnord Ecommerce in the Nordics 2017
4) Source: City of Helsinki/Stockholm/Oslo/Copenhagen