The Finnish Commerce Federation has reported signs of recovery in the retail sector, with sales volume and revenue on the rise since September. While this growth is promising, the sector is still facing challenges, especially with employment numbers continuing to fall. The federation predicts that, despite a moderate growth forecast for retail sales this year and next, it could lead to the loss of 12,000 to 13,000 jobs by 2027 compared to 2024 levels.

Consumer caution remains a significant hurdle for the demand recovery, as many shoppers are still hesitant to spend freely. To combat this hesitancy and stimulate consumption, the Commerce Federation has proposed measures like increasing the household deduction and temporarily removing the transfer tax. Such strategies aim to enhance consumer confidence and encourage spending as the holiday season approaches.

Interestingly, despite the economic challenges presented by rising interest rates, the Christmas shopping season has experienced a pleasant surprise, marking the first noticeable increase in retail growth since the onset of the Russian invasion of Ukraine. This unexpected boost in holiday sales has contributed positively to the retail sector's growth in the latter part of the year, although annual sales figures still reflected a slight decline of 0.6%.