Kiosks Move off Streets, into Malls
Even as the obituary of the corner store is being written in many neighborhoods, the recent closing or moving of 50 kiosks in a well-known chain is being seen as yet another retreat for smaller stores and "microbusinesses."
Some kiosks that sell certain dubious wares to a niche clientele remain impervious to market trends, ETV reported, but for those looking for a morning newspaper or snack on the way to work, an R-Kiosk outlet may now be hard to find. People have to make their way into one of the hypermarkets and shopping centers to visit one.
Legions of small stores selling a miscellany of goods are a characteristic of life in Eastern Europe, but they seem unlikely to ever make a return to Estonia, ETV reported. Nor will the country make a move to the tiny boutique businesses and family-run bakeries seen in Western Europe.
Instead, says the CEO of one of the country's better-known department stores, Estonia has clearly opted for a northern model.
"The consolidation of trade in larger centers is typical of the Nordics, in areas with a colder climate where consumers have an appreciation for convenience and good parking," said Tallinna Kaubamaja AS department stores division CEO Erkki Laugus.
Tallinners still recall how a friend of the mayor, Aleksandr Kofkin, won a concession to start operating a chain of fast food businesses out of kiosks, featuring the somewhat cryptic sign "Burger Quiche." It quickly failed.
Some coffee chains, such as Coffee In, remain open to setting up independent locations as well as mall outlets. "If it is possible to offer the same products and services with tried-and-true good quality, then it does not matter whether you do it in a separate sales point or in a shopping center," said Coffee In marketing director Liisi Valge.
But that particular "microbusiness" chain relies on tourists to a large extent, while R-kiosk is seen as catering to locals.
"Consumer affluence certainly plays a role. Compared to Western Europe, many street commerce and small business consumers [in Tallinn] are tourists," said Laugas.
Kristopher Rikken