Osuuskauppa Arina secures deal in billion-euro Oulu project, leaving Kesko concerned

A major retail rivalry is unfolding in Oulu as Osuuskauppa Arina signs a development agreement for the Raksila district’s billion-euro redevelopment, while competitor Kesko warns it risks being sidelined, reports Finnish broadcaster Yle.

The cooperative retailer announced this week it had partnered with construction firm SRV and asset manager Trevian to develop the area, which includes a planned entertainment arena. The project—combining public and private investment—is valued at around €1 billion, according to SRV’s strategic development director Hannu Lokka.

Kesko, which currently operates a grocery store in Raksila slated for demolition, has expressed concern over being excluded. The company’s regional director for Northern Finland, Jari Saarinen, stressed the need for “equal conditions” and warned that losing its location would be a “significant blow.”

“Our sincere hope is that we’re not forgotten now and that we’re also heard in this matter,” Saarinen told Yle, adding that Kesko has engaged in years of discussions with the city. The company aims to establish a new Citymarket store in the area.

Oulu city project manager Karri Oikarinen confirmed that Arina’s involvement stems from its willingness to invest heavily in Northern Finland, including not just retail but also hotels and restaurants—a broader scope than Kesko’s focus on grocery trade. Oikarinen noted that while Arina is the first to formalize plans, the door remains open to other investors.

“Anyone can come to us and express their willingness to invest in the area,” he said, emphasizing that the city continues dialogue with Kesko and other potential partners, including discount retailer Lidl, which has also signaled interest in Oulu.

The redevelopment will transform the central Raksila district, with existing stores—including those of both Arina and Kesko—demolished to make way for new construction. Arina CEO Reima Loukkola described the future site as a “very broad service hub” catering to locals, tourists, and the cooperative’s member-owners, spanning food retail, consumer goods, and hospitality.

Kesko is now awaiting the city’s next steps, as Oulu owns the land. “We’re in a waiting position: will we still be invited to the negotiating table, or is this it—that we’re no longer being listened to? That would feel truly absurd,” Saarinen said.