Expert: People are Tired of Hypermarkets, Smaller Community Centers Are Emerging

If it seemed a few years ago that retail belonged to large hypermarkets, consumers are increasingly valuing so-called proximity, which is why smaller community centers are gaining popularity as a new trend, comments Igo Sagri, a commercial real estate consultant at 1Partner.

The 1Partner consultant highlights two important reasons why classical hypermarkets have not taken over the entire market and why the trend may even move in a different direction. "On one hand, the fast pace of life means people don't want to spend a lot of time on small everyday shopping, and on the other hand, so-called community-centered thinking has clearly gained popularity in recent years," explains Sagri, who believes that large centers are not going anywhere, but their role is changing. While hypermarkets used to be visited for everyday goods as well, now milk and bread shopping is preferred at smaller stores integrated into the living environment. "In a sense, Prisma's decision to leave is a significant confirmation that size is not always the most important thing," he adds.

According to Igo Sagri, the success of small community centers lies precisely in the human dimension. "Such centers are not only for shopping, but they become meeting places in the neighborhood. People pass through them daily, grab a coffee or use services, and this also creates a sense of community that large hypermarkets cannot offer," explains the 1Partner consultant, who notes that several smaller community centers have been completed in recent years in Tallinn and its surrounding districts. "Their own local centers have opened in Tabasalu, Tiskre and Veskimölde, and you can see this trend continuing in rapidly developing residential areas."

A good example, according to Sagri, is the new residential area at Natura Park in Haaberstis, where 350 families have moved in over the past couple of years and more homes are still being built. "They would rather not drive to a large shopping center for every small thing but prefer that a parcel locker, café, small shop, beauty services or dry cleaning are accessible on foot or by bike from home. The developer sees demand here and is building them a new community center called Mercado by the end of the year, the name of which itself refers to a marketplace as a central meeting place," says Sagri, who notes that there is high interest from merchants and service providers in such small centers. "The expected clientele does not have to be very large, but rather loyal," he explains, adding that even half a year before completion, several spaces in the 1,600-square-meter center are already covered by contracts.