Local village shop faces closure after 15 years as rural stores decline across Finland
A community-run village shop in Ullava, central Finland, is struggling to survive due to falling customer numbers, reflecting a broader crisis for small rural stores nationwide, reports Yle.
The M-Market Lukkari in Kokkola’s Ullava district, established 15 years ago by residents after the previous shop closed, now faces financial difficulties. An emergency meeting this week will discuss cost-cutting measures as revenue fails to cover expenses.
“Some villagers still use the shop, but many don’t,” said Matti Töyräskoski, chair of the shop’s cooperative board. “Holiday homes stand empty, people move away, and mostly older residents remain. The pull of discount cards at big supermarkets is too strong.”
The decline mirrors a national trend. Finland had over 600 village shops in 2004; by 2024, only 155 remain. Sales at the smallest stores (under 100 sq m) dropped 11% in early 2024, while hypermarket sales grew nearly 5%, according to the Finnish Grocery Trade Association.
Rising costs and shifting habits
Ilkka Nieminen, the association’s director, calls it a long-term shift: “Small shops can’t match the range or prices of big stores. Many find it easier to shop at larger outlets during their commute.”
The shop’s survival is also threatened by an EU regulation requiring refrigeration upgrades by 2030—a costly investment for small businesses. While state subsidies exist (averaging €9,000), new cooling systems cost tens of thousands.
Nieminen suggests Finland adopt Sweden’s model, offering larger investment grants and allowing village shops to host Alko (state alcohol retailer) pickup points without delivery fees.
Community effort to revive local trade
Founding member Reino Herlevi believes the shop can recover if residents recommit to using it. “We’ve forgotten that these services only stay if we support them,” he said.
The Ullava shop, which also houses a café, pharmacy dispensary, post office, and parcel services, employs four staff. Its annual turnover has fluctuated between €750,000 and €800,000.
Without intervention, experts warn, more rural shops—and the vital services they provide—will disappear.