WELCOME

TO Content

We are glad that you picked up this publication, since it means you SWEDEN are interested in learning more about opportunities in Sweden. 4 THE NORDICS The purpose of this guide is to give an overview and assist you in 6 SWEDEN OVERVIEW evaluating an entry into this dynamic market. 10 THE SWEDISH RETAIL MARKET Sweden stands out and outperforms the rest of Europe in many 13 THE SWEDISH CONSUMER key areas such as economy and competitiveness. Equally important, 14 SHOPPING TOURISM we are a nation of high-income earners with a large share of spend- 16 FOODIE NATION ing on retail and food & beverage. Swedes are also recognised as 18 GREAT SUPPLY OF RETAIL SPACE widely travelled trendsetters who are innately curious about new 19 EXCELLENT LOGISTICS HUB international brands and products.And since the purchasing power 20 E-COMMERCE IN SWEDEN 22 ESTABLISHMENT FACTS is one of the highest in Europe, they have ever increasing means to 24 A-Z GUIDE TO SWEDEN satisfy that curiosity. Many new international brands have already discovered the potential but there is room for many more. The share of international retailers in Sweden is low compared to markets in the rest of Europe. 11 REASONS TO TAKE A 26 STOCKHOLM OVERVIEW 30 LARGEST SHOPPING DESTINATIONS CLOSER LOOK AT SWEDEN 32 SHOPPING CENTRES 34 KEY RETAIL AREAS CITY CENTRE • Top performing economy in Europe 36 RETAIL DEVELOPMENT • Largest market in the Nordic region • Strong retail sales growth for 20 consecutive years • Wealthy consumers with high purchasing power Sweden stands out – Luts'Luts'kk • Population growth and a large, well-educated middle class Rivne 38 GOTHENBURG OVERVIEW outperforming the rest of Europe 42 LARGEST SHOPPING DESTINATIONS • Recognised as a trendsetting and progressive country L'viL'vivv Ternopiernopill 44 KEY RETAIL AREAS CITY CENTRE • Sophisticated consumers, early adopters in many key areas such as 46 RETAIL DEVELOPMENT • Strong appetite for new international retail brands

ChernivtsiChernivtsi economy and competitiveness. • Well established test market MALMÖ • Availability of attractive retail space 48 MALMÖ OVERVIEW • Transparent market and easy to do business 52 LARGEST SHOPPING DESTINATIONS This guide charts retail opportunities in Sweden’s three largest city 54 KEY SHOPPING STREETS CITY CENTRE regions – Stockholm, Gothenburg and Malmö – and provides hard 56 RETAIL DEVELOPMENT facts and information about the market, demand and supply. It has been developed in joint collaboration between the national trade and investment council Business Sweden, the regional investment promo- Let us assist you tion agencies of Stockholm, Gothenburg and Malmö and the Stock- 59 CONTACT INFORMATION holm City Center Partnership. Among the partners are the Stockholm Property Association, property owners and consultants. Please contact us for advice, networking contacts and establish- ment support – free of charge and in full confidentiality – to assist you further in evaluating the opportunities and setting up a success- ful business in Sweden. Please see contact details at the back.

2 3 THE NORDICS TOP OF LEAGUE OUTPERFORMING EUROPE Sweden is the very epicentre of the Nordic region, being the largest market, financial centre and hub for business in the region. Together NORWAY the – Sweden, , Finland and Norway – make up SEK 445 billion the 11th largest economy in the world, consisting of 26 million inhabitants. Retail turnover SEK 374 billion 5.3 million Retail turnover inhabitants 5.5 million 83,962 SEK/capita inhabitants The Nordic model – one region, four countries Comparing wealth with price levels 68,000 SEK/capita Some consider them small nations up north but in Norway stands out with a GDP significantly higher fact, the Nordics are continuing to outperform the rest than the rest of the Nordics and Europe, largely due to

of Europe, showing higher scores on practically every Norway’s abundance of oil. But one should also take Finland chart and ranking one cares to construct. into consideration that Norway is one of the most The four countries are tied together historically expensive countries to live in, with 52 percent higher through collaboration and many similarities – political prices on goods than the EU average. The Norwegians visions, social security and cultural traditions – even actually flock to Sweden to shop. Swedish consumers language (except for Finnish). This has been interna- have the second highest GDP per capita in the Nordics tionally labelled as the “Nordic Model” – a hybrid and 24 percent higher than the European average, yet system with its mix of social welfare benefits, open- prices are not as high. ness and high-tech capitalism, which has made the Helsinki region a highly attractive place for both living and Norway doing business. Add to that security, transparency Sweden Forbes recently named Oslo Stockholm and lack of corruption. Sweden as the world's best SWEDEN High performers in an international perspective country for doing business. The Nordic economies, and especially Sweden and SEK 750 billion Norway, have shown strong development in recent Denmark, Finland and Norway DENMARK Retail turnover years. The region has stood out from the rest of the 10.0 million developed world with its strong macroeconomic also ranked in the top 10. inhabitants fundamentals. Low sovereign debt, transparent -Forbes Best Countries for SEK 384 billion 75,000 SEK/capita economies, a well-consolidated banking system and Retail turnover Business 2017 5.7 million consumers with sound personal finances, produce a Denmark Copenhagen combination of stability and growth potential. inhabitants 67,368 SEK/capita

PRIVATE CONSUMPTION AND GDP DEVELOPMENT RETAIL DEVELOPMENT 2017 (F), % AND FORECAST, % PRICE LEVELS VS. GDP PER CAPITA - EUROPEAN RANKING PURCHASING POWER PER CAPITA 6.2 (Index 2016) Nordic capitals, 2015 5.8 EU-28=100 Price level GDP per capita Purchasing 4.7 power 170 159 Net annual Inhabitants income Price levels incl. rent* 3.2 3.2 2.9 Iceland 151 129 2.5 2.5 2.3 2.3 2.3 2.4 2.2 Stockholm 924,000 79.4 62.8 1.9 Norway 149 149 1.6 1.7 1.7 1.1 Oslo 659,000 81.7 79.9 1.1 Denmark 139 125 0.5 Copenhagen 583,000 59.3 74.3 Luxembourg 138 267 Sweden Norway Denmark Finland Sweden Norway Denmark Finland Helsinki 628,000 75.9 63.2 Sweden 133 124

Ireland 126 177 *New York = Index 100, The price level rankings reveal the relative Private consumption 2016 cost of goods and services worldwide. Source: Gfk, 2017 Source: HUI / SCB/ SEB, 2017 Retail turnover 2017 Finland 123 109 Source: UBS, 2015 2018 (f) UK 122 118

Austria 111 126

Source: Eurostat, 2016

4 1 Swedish krona, SEK = ¤ 0.104, EUR (average 2017) 1 Swedish krona, SEK = ¤ 0.104, EUR (average 2017) 5 Photo: Marcus Ohlsson/ LUNDLUND Ohlsson/ Marcus Photo:

SWEDEN STANDS OUT International companies are attracted to Sweden for numerous reasons. The country is a global leader of innovation with a highly skilled labour force, sophisticated consumers, smooth business When it comes to style and , Nordiska Kompaniet is one of Sweden’s leading department stores. When it was founded back in 1902, the ambition was already clear. The department store procedures, openness to international ownership was to be a commercial and cultural theater – a stage for contemporary life. This fall, Nordiska Kompaniet takes a closer look at the part technology plays within fashion

and a stable economy. LUNDLUND Ohlsson/ Marcus Photo: and beauty. In the exhibition Artificial Icons, the department store brings a few of history’s most important garments and accessories into the future by recreating them with the help of 3D-printers.

6 1 Swedish krona, SEK = ¤ 0.104, EUR (average 2017) 1 Swedish krona, SEK = ¤ 0.104, EUR (average 2017) 7

SWEDEN’S LARGEST Population Growth from CITY REGIONS 2016 2015, %

1 Stockholm County 2,269,060 1.7%

TOP 10 MOST COMPETITIVE WORLD ECONOMIES 2 Göteborg (greater region) 997,416 1.5% Despite the relatively small 1 Switzerland 3 Malmö (greater region) 707,788 1.8% population, Sweden consistently Kiruna ranks as one of the most 2 4 Uppsala 214,559 2.1% 3 competitive, productive and 5 Linköping 155,817 1.9% globalised countries in the world. 4 5 6 Västerås 147,420 1.5% 6 Hong Kong SAR 7 Örebro 146,631 1.7% 7 Sweden Highly competitive and progressive nation 8 8 Helsingborg 140,547 1.8% The Swedish business community continues to 9 Japan demonstrate the ability to take on new ideas and to 9 Norrköping 139,363 1.7% 10 Finland innovate, adapt to changing business conditions and Luleå 10 Jönköping 135,297 1.5% compete in an international setting. The fact is that Source: The global competitiveness report 2017

Sweden is home to some of the most respected and Source: SCB, 2017 well-known brands in the world, including Volvo, Electrolux, Ericsson and H&M. Retail giant IKEA was founded in Sweden in 1943 by then 17-year-old Ingvar DEMOGRAPHY – AGE STRUCTURE, 2016, % Kamprad. It is also the birthplace of innovative start- Skellefteå Sweden and the three largest city regions ups that have achieved global success, such as Skype, SWEDEN IS IN GOOD SWEDEN STOCKHOLM Spotify and Klarna. FINANCIAL SHAPE Sweden has the largest population and the largest • Public finances are balanced Umeå retail market, and receives as much foreign direct • GDP growth is solid 20% 21% 16% 22% investment as the Nordic and Baltic countries togeth- • Employment levels increasing er. Of all the Nordic countries, Sweden has the highest • Interest rate low 9% level of retail attractiveness when it comes to estab- Östersund 8% lishing new business ventures, and international retail- • Consumer confidence high 24% ers continue to selectively expand in the Nordic region • Purchasing power high 25% at a slightly faster rate than in Europe’s key cities at an • Retail sales growing 26% 30% aggregated level. Sweden’s central location and strate- gic gateway to Northern Europe have also made it a natural logistics hub and place for consolidated busi- GOTHENBURG MALMÖ ness in the region. 15% 15% 20% 21% Growing population KEY FACTS SWEDEN Sweden’s population is 10.0 million and the country Gävle/Sandviken 10% has enjoyed steady population growth over the past 22% 9% Population 2017, million 10.0 Borlänge 23% 22 years, especially in urban areas, due to net immi- gration, increasing birth rates and lower mortality. The GDP growth 2017, % 2.7 3% trend is only expected to continue. The majority of the GDP growth 2018 (f), % 2.3 Uppsala 33% 34% population lives in the middle and southern parts Inflation (Sep 2017), % 2.3 where the largest cities – Stockholm, Gothenburg and Västerås AGE 0–17 18–24 25–44 Malmö – are situated. The levels of immigration mean Retail sales growth 2016, % 3.4 Örebro STOCKHOLM 45–64 65+ Karlstad Eskilstuna that the population is highly diverse, with people from Retail sales growth 2017 (f), % 2.5 Source: Handeln i Sverige, 2017 many different cultures. Unemployment rate (Aug 2017), % 6,0 TOP 10 COUNTRIES IN EU Norrköping Wealthy middle class with one of the highest levels Repo interest rate 2017, % -0.5 GDP PER CAPITA IN PPP, SEK Linköping of purchasing powers in Europe Disposable income and private consumption growth GDP per capita 2016 SEK 443,900 FinlandLuxembourg 890,401 are stronger than in most other European countries. Disposable income per capita 2016 SEK 273,532 There is a large middle-class segment with high GOTHENBURG Ireland 592,707 Retail sales per capita SEK 75,000 spending power, and the difference between high and Jönköping Borås low-income households is low. Put simply, Swedes Corporate tax rate 22% Netherlands 437,046 are wealthy and 80 percent of the population earns Swedish krona, SEK/Euro (average 2016) 9.5 Sweden 426,661 75 percent of total income. Swedish krona, SEK/$ (average 2016) 8.6 Kalmar Halmstad Germany 411,893

Source: SCB/OECD/HUI Helsingborg /Landskrona Karlskrona Austria 410,985 Lund Denmark 410,814 MALMÖ 385,661

France 362,271

Finland 360,987 Source: KNOEMA, 2017

8 1 Swedish krona, SEK = ¤ 0.104, EUR (average 2017) 9

20,600

19,700

19,400

19,200

19,100

18,600

17,500

17,300

17,200

15,700

14,100

13,900

12,000 THE SWEDISH RETAIL MARKET FORECAST TO OUTPERFORM MOST OTHER COUNTRIES Demand within many segments SWEDEN IS RANKED THE 5TH BEST COUNTRY IN THE There is a welcoming attitude in Sweden, both among WORLD WHEN IT COMES TO CROSS-BORDER TRADE. consumers and property owners, to concepts that add RANK - TRADING ACROSS BORDERS diversity to the retail market structure. The fact that Strong retail sales growth in Sweden RETAIL SALES PER SEGMENT, 2016 Sweden has four distinct seasons, for example, creates The Swedish retail market has enjoyed positive annual a demand for a wide range of products and services 1 Singapore growth for 20 consecutive years, fuelled both by related to the home and to leisure activities. Swedes Daily goods: 43% 2 Netherlands steadily increasing population growth and rising dis- are also characterised by a love of outdoor activities, posable income. Growth in both private consumption sports and other healthy pursuits. Showing off your 3 Hong Kong and retail sales is stronger in Sweden than in almost perfectly decorated home with a newly renovated Construction and 4 Luxembourg any other European country. Swedish consumers have buildingkitchen materials: and bathroom 5% and inviting your friends over increased their retail spending for more than two for dinner is equally important. Simultaneously though, 5 Sweden decades and retail sales account for some 33 percent Swedes are spending an increasing amount of money 6 Finland of total household expenditures. Adding in Food & Electronics:on going out6% to eat and drink The Food & Beverage Beverage, the share is almost 40 percent. 750 sector is growing rapidly in. 7 Austria Another driver of retail sales growth is the increasing (See Food & Beverage section, page 16.) SEK billion Clothing: 8% 8 United Kingdom shopping tourism. (See Tourism section, page 14.) (¤78 billion) Mature but vibrant retail market 9 Germany Home furniture:The Swedish retail 5% market is well developed and domi- Strong growth in e-tailing nated by a small number of large chains. This is espe- 10 Belgium The strong growth in e-commerce of goods continues cially true of high-volume clothing, furniture and food Daily goods: 43% Sport & leisure: 4% with an increase of 17 percent. Online sales amount to retail, where it is common for several different chains Construction and Source: World Economic Forum, 2017 7 percent of total retail sales and about two thirds of building materials: 5% to have the same owners. Swedish H&M is the second the Swedish population makes at least one purchase Other: largest29% clothing retailer in the world and IKEA the Electronics: 6% online every month. Consumer electronics, clothes world’s largest furniture retailer. The success of these and groceries top the list. Traditional store retailers are Clothing: 8% two multinationals illustrates that the Swedish retail increasingly complementing their store sales with Daily goods: 43% Home furniture: 5% market is mature and innovative, and can compete online sales. Consumers are choosing to shop from Construction and Sport & leisure: 4% well in the international market. building materials: 5% international sites to a greater extent, Other: 29% preferably fashion. Electronics: 6% (See e-commerce section, page 20.) Clothing: 8% Home furniture: 5% Source: HUI, 2017 Sport & leisure: 4% Other: 29% 20 40% RETAIL SALES AND GDP DEVELOPMENT, 2008-2018, % consecutive years of of total household expenditure annual retail sales growth is spent on retail and F&B

6.0 5.8

4.2 PRESENCE OF INTERNATIONAL RETAILERS 3.6 3.7 3.4 3.4 3.4 3.2 2.7 2.3 2.5 2.4 2.5 2.1 2.0 2.1 Mainstream Premium Luxury 1.2 0.8 Stockholm is the springboard 1 Stockholm for retailers into the region 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (f) 2018 (f) and has the highest presence 2 Copenhagen –0.6 –0.3 of international retailers compared to its Nordic peers, 3 Oslo followed by Copenhagen, Retail sales Oslo, Malmö, Gothenburg 4 Malmö GDP growth and finally Helsinki. –5.2 5 Gothenburg

Strong retail sales growth even during Source: HUI, 2017 Source: JLL, 2015 6 Helsinki the few years of financial downturn. 2013

10 1 Swedish krona, SEK = ¤ 0.104, EUR (average 2017) 1 Swedish krona, SEK = ¤ 0.104, EUR (average 2017) 11 THE SWEDISH CONSUMER CURIOUS AND PROGRESSIVE TRENDSETTERS

Swedes are recognised both for setting new trends and rapidly adopting them from abroad. They travel wide- ly, expanding their minds culturally, exposing them- selves to many different cultures, and cultivating a taste for new brands and experiences, which they love to test against their own high standards. Swedes are Sweden is one of the also demanding buyers who value function and quality as much as design and branding in purchasing decisions. most individualised The use of social media and mobile communication is high. Consumption patterns reflect both equality and secularised and individuality. Alternative lifestyles and relationship patterns are tolerated and welcomed. New move- countries in the world. ments in fashion, music or design are often communi- cated through media, blogs and personalities. - World Values Survey Photo: Melker Dahlstrand Melker Photo:

OPPORTUNITIES FOR INTERNATIONAL RETAILERS GROWTH PROSPECTS IN LARGELY UNTAPPED MARKET

For international retailers looking for growth and diversification, the Swedish retail market is an increas- ingly attractive destination for expansion. As the glob- al retail industry has expanded rapidly into new mar- kets, the Swedish and Nordic markets have remained relatively untapped by international retailers. Tradition- There have been a number ally, the country has been dominated by domestic and of new openings over the Scandinavian brands, but in recent years new brands have entered the market with further expansion plans. last five years. Examples Sweden is well suited to new retail concepts and there are opportunities in most segments. The market include Aesop, Celine, is largely unregulated and open to international entrants. Stockholm, Gothenburg and Malmö are Disney Store, Eataly, Lindt, among Europe’s most affluent cities. A high degree of MAC, Moncler, 3ina, Pull & market maturity, resilience and growth prospects as well as real estate transparency and low risk add to Bear and Tesla. their appeal.

Recent International retail brand entrants – a selection • Aesop • American Vintage • Apple Stores • Axel Arigato • Calzedonia • Celine • Chanel • Chanel Beauty Store • Coca-Cola Store • Disney Store • Eataly • Gear4Music • Hamleys • Holland & Barrett • Intimissimi • JD Sports • Lett • LG • Joe Malone • Joe & The Juice • Kiko • LEGO Store • Lindt • MAC • Moncler • MRoom • Oysho • Picard • Pull & Bear • Red Wing Store • River Island • Sephora • Starbucks • Suitsupply • Superdry Photo: Victor Gårdsäter Victor Photo: • Tesla • Varner Group • Victoria's Secret • XXL • Zalando • 3ina

12 13 LARGE INCREASE IN SHOPPING TOURISM

Product purchases: 45% Restaurants & Lodging: 25% Travel & transportation: 14% Fuel: 9% Culture & recreation: 6% Record volumes and record shopping Other: 1% expenditure fuel Swedish retail sales. FOREIGN VISITORS CONSUMPTION IN SWEDEN, 2016

With the fashionable lifestyle in its largest cities and its five-star culinary experiences, Sweden is gaining the attention of travellers from around the world. OPPIN A new record was set in 2015 when 60 million SH G commercial overnight stays were recorded, the largest increase originating from non-European countries like , USA and India. The fact that tourism is the fastest growing industry in Sweden has had a significant impact on the retail and shopping culture. Revenues from international visitors 120 have more than doubled in the last five-year period, and visitor volumes have increased faster than the European SEK billion average. Shopping and product purchases was the (¤12 billion) largest single expenditure for international visitors.

Product purchases: 45% TOURISM FACTS Product purchases: 45% Source: Swedish Agency for Economic and Regional Growth, 2017 Restaurants & Lodging: 25% Restaurants & Lodging: 25% Travel & transportation: 14% Travel & transportation: 14% Fuel: 9% SEK Product purchases: 45% Fuel: 9% Culture & recreation: 6% Restaurants & Lodging: 25% Culture & recreation: 6% billion Other: 1% 95 Travel & transportation: 14% Other: 1% is what visitors spent on restaurants and lodging in 2016, Source:Fuel: Swedish 9% Agency for Economic and Regional Growth, 2017 Since 2000, foreign consumption has CultureSource: & recreation: Swedish 6% Agency for Economic and Regional Growth, 2017 grown by 177 percent. Other: 1%

Source: Swedish Agency for Economic and Regional Growth, 2017

TOP COUNTRIES VISITING SWEDEN Thousand SEK 2016 overnight stays 296 billion Norway 3,414 (-2.0%) in total consumption from tourists Germany 3,037 (+3.7%) (+5% since 2015). Foreign consumption in Sweden has Denmark 1,135 (-5.4%) increased three times as much as UK 861 (+11.6%) domestic consumption. Netherlands 666 (+1.2%)

Finland 587 (+2.8%) million USA 550 (+3.2%) overnight stays, of Switzerland 370 (+3.5%) which 16 million are China 324 (+25.9%) international. 60 Poland 316 (+11.9%) Shopping is the largest expenditure among foreign visitors, at 45 percent of total consumption. Source: Swedish Agency for Economic and Regional Growth, 2017

DID YOU ... that 80 percent of all transactions in Sweden are made by cards. Sweden might very Source: Svensk Handel, 2017 KNOW ... well be the first cash-free society in the near future. Photo: Simon Paulin Photo:

14 1 Swedish krona, SEK = ¤ 0.104, EUR (average 2017) 1 Swedish krona, SEK = ¤ 0.104, EUR (average 2017) 15 Photo: Jakob Fridholm Jakob Photo: FOODIE NATION WITH WORLD-CLASS CUISINE The all-pervasive Swedish interest in food and beverage experiences continues unabated. Food innovators are gaining an international reputation, and consumers are dining out like never before.

TOTAL F&B SALES PER SEGMENT, 2016 Swedish consumers are spending more and more mon- ey on food and beverage. The restaurant industry’s Cafés/ Workplace Restaurants: 4% turnover is growing fast and hit a record high of SEK Coffee shops: 127 billion in 2016. An increase of 7 percent over 7% the previous year. Hotel restaurants: 10% Hotel Sweden has emerged as a foodie nation to watch, restaurants: with its modern food scene, indigenous cuisine and 10% Cafés / coffee shops: 7% culinary techniques that shape global trends. Swedish Workplace Restaurants: 45% chefs have achieved world recognition by earning both restaurants: 127 gold and silver medals at the culinary Olympics, the 4% Bocuse d’Or. And with gourmet restaurants opening SEK billion Fast food restaurants: 13% their doors all over the country, Sweden has trans- (¤13 billion) formed itself into one of Europe’s haute cuisine hot Entertainment Roadside restaurants & venues and spots, which has definitely caught the eye of food crit- bars: 13% catering: 6% ics across the globe. Restaurants: The café and coffee shop industry is also booming. 46% Entertainment venues Turnover has nearly doubled since 2007 - an increase Roadside restaurants: 7% and bars: 14% that is 70 percent higher than the rest of the restau- Fast food rant sector. This is largely due to an industry develop- restaurants: 13% ment where a range of concepts and different type of coffee shops have struck a cord with consumers. Source: SCB,2017 There has been a shift in recent years with Swedish consumer increasingly adopting a life-style of eating out. A restaurant visit is no longer reserved for social RESTAURANT TURNOVER 2004-2016 MILLION SEK occasions or business meetings. Breakfast, lunch and (INCLUDINGRESTAURANT VAT) TURNOVER 2004-2016 dinner - eating out has become a way to take care of MILLION SEK (INCLUDING VAT) everyday meals. In fact, Swedish consumers now 120,000 spend about as much on cafés and restaurants as they do on groceries. Opportunities for anyone who wants to introduce 100,000 new F&B concepts to Sweden most certainly exist – from fast food to fine dining concepts.

80,0000

Recent international food and beverage companies established in Sweden 60,000 • Burger & Lobster • Domino's Pizza • Dunkin' Donuts • Eataly • Egon Restaurant • Foodora • Jamie's Italian • Joe & the Juice 40,000 • KFC • Lett • Lindt • Picard • Simit Sarayu • Starbucks • UberEATS • Vapianio • Wagamama 20,000

0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: Visita/SCB, 2017 DID YOU ... that Sweden offers world-class cuisine with as many as KNOW ... 23 restauratants with a total of 26 Michelin stars.

16 1 Swedish krona, SEK = ¤ 0.104, EUR (average 2017) 1 Swedish krona, SEK = ¤ 0.104, EUR (average 2017) 17 GREAT SUPPLY EXCELLENT LOGISTICS HUB OF RETAIL SPACE FOR NORTHERN EUROPE The Swedish shopping centre market is one of the most Sweden ranks at the top as the most trade-friendly and logistically mature and well developed in Europe. Major attractive efficient nation in the world, moving goods and connecting developments cater to increased demand. manufacturers and consumers with international markets.

there is a considerable supply of retail space on the Developers and property owners are working sweden is the preferred choice when companies con- WORLD LEADING LOGISTICS INFRASTRUCTURE Swedish market and the total retail stock amounts to constantly to increase the stock of attractive retail solidate distribution and warehousing activities in Logistics Performance Index (Global ranking) approximately 18 million sq m, including shopping space due to strong private consumption and retail Northern Europe to one central location. From Swe- 1 Germany centres, retail parks and high street premises. Sweden sales growth. den, all major cities in Sweden, Denmark and Norway 2 Luxembourg 3 Sweden has some 400 sq m GLA per 1,000 people, compared Most major Swedish cities have at least one retail are accessible by road transport in less than 12 hours, 4 Netherlands to the EU average of 231 sq m retail space per 1,000 park, with IKEA dominating the out-of-town market. while Estonia, Finland, , and western 5 Singapore people. About 15 new shopping centres located all over are accessible within 24 hours. Some ten 6 Belgium Ever since the 1950s, Swedish families have been Sweden are in the pipeline stretching out to 2017. Swedish locations are used by foreign companies for 7 Austria 8 United Kingdom happily making weekly trips to their shopping destina- Some of these recently opened and ongoing develop- centralised distribution in Northern Europe. 9 Hong Kong tions, both out of town and in the cities. Shopping cen- ments are presented in the following city guides, rang- Infrastructure investments have provided Sweden 10 USA tres represent some 30 percent of the non-daily ing from high-tech setups with a GLA of more than with outstanding capacity to assure fast, frequent and Source: World Bank Logistics Performance Index 2016 goods market. In the Stockholm area, this figure is 100,000 sq m, to specialised city district develop- timely deliveries. Road and rail capacity to and from closer to 50 percent. The retail sales in shopping cen- ments and shops in restored historical buildings. Sweden is supported by several high frequency ferry tres account for more than 33 percent of total retail connections and an extensive port network. The sales in the country. Swedish distribution network comprises a large num- Recent international companies setting There is a healthy nationwide supply due to major ber of freight-forwarding and full-service third-party up Nordic fulfilment centers in Sweden ongoing and planned expansions of shopping centres logistics (3PL) providers. Spurred by the requirements • Gear4Music • LG • Varner Group and retail parks throughout the country, as well as a Ever since the 1950s, Swedish of diversified and multinational industries, Sweden’s • XXL • Zalando number of city-centre renewal projects. Much of Swe- families have been happily logistics sector has become one of the most capable den’s retail space is under institutional ownership and in Europe. Early globalisation of Swedish created high many owners specialise solely in retail property. making weekly trips to their demand for efficient transport and communications shopping destinations. systems.

SHOPPING CENTRE, PRIME RENT AND YIELD SEK PER SQ“Ensuring M PA consumer satisfaction, shortening 10 000 lead times and providing10 a fashionable assortment9 8 000 are essential elements 8

All major destinations moving forward. This 7

12 HOURS is why we are investing can be reached within 2 6 000 6 in establishing a new hours by air and 24-hour 5 12 HOURS 30,000 sqm fulfillment distribution is possible 4 000 center near Stockholm.”4 throughout the entire 3 Baltic sea region Kenneth Melchior, 2 000 2 Photo: Nicho Södling Photo: Cluster Head Nordics at Zalando 1 0 Q2 10 Q2 11 Q2 12 Q2 13 Q2 14 Q2 15 Q2 16 F 2016 F 2017 F 2018 0 Luts'Luts'kk Rivne

L'viL'vivv Prime rent Prime yield (%) Ternopiernopill

18 1 Swedish krona, SEK = ¤ 0.104, EUR (average 2017) 1 Swedish krona, SEK = ¤ 0.104, EUR (average 2017) 19 DID YOU ... that 51% of the Swedish population ... that every fifth package delivered in KNOW ... shop online from mobile phone or tablet. Sweden is sent from abroad. E-COMMERCE IN SWEDEN IMPRESSIVE GROWTH AND STRONG DEMAND

Increasing digitization drives globalization. Today's E-COMMERCE SALES BY SEGMENT IN BSEK, 2016 consumers are becoming more discerning and demanding; they want a large variety and they want Consumer Apparel/ Consumer Electronics: 12,2 bSEK electronics: : products delivered in ways that fit into their daily lives. 12.2 9.1 When Swedes shop online from abroad, it is mainly Apparel/Shoes: 9,1 bSEK the wide range and lower prices that drive their purchases. Groceries: Fast, convenient deliveries is now something that 5.5 Groceries: 5,5 bSEK Swedes take for granted, and consumers are looking for an increasingly higher degree of precision and 58 Books/Media: 4 bSEK flexibility. Today’s consumers place the same expec- Books/ tations on physical and digital commerce alike. It’s a SEK billion Media: Building Materials: 3,6 bSEK matter of being accessible in the way that consumers (¤6 billion) 4.0 want. Whether or not this is achieved physically or Other: 17.1 Furniture/Decoration: 2,5 bSEK digitally has become less important. More and more Building e-tailers are also establishing physical stores, often to Materials: 3.6 satisfy shoppers’ demand for accessibility. Sports/Leisure: 2,3 bSEK Furniture/ The main reason why Swedish consumers buy Decoration: goods online is that e-commerce allows them to shop Toys/Childrens items: 1.7 2.5 Toys/Childrens items: 1,7 bSEK when it suits them. Time-savings, better selection and Sports/ the convenience factor also drive online shopping. Leisure: 2.3 Other: 17,1 bSEK The most popular product categories online are Source: E-barometern, 2017 home electronics, clothing and footwear, media (including books, films, and video games), and build- ing supplies. Online solutions for grocery shopping is growing rapidly. One in four online purchases are cross-border. Swedes’ favorite international e-commerce destina- tions are China and the UK, and a significant propor- tion of Swedish consumers also buy from Germany and the US. It is crucial to offer locally adapted, trouble-free delivery 67.7 MATURE E-COMMERCE CONSUMERS methods. Additionally, 58.1 Population (18-79) 7,411,852 50.1 Internet penetration 93% new types of delivery (% of population) 42.9 services are becoming E-COMMERCE TURNOVER, SEK BILLION Shop online 89% 37.0 (% of population) increasingly common 31.6 At least one online purchase per month 67% 27.7 Online purchases from foreign sites per month 29% and more highly valued. 25.0 22.1 20.4 Average purchase per person per month 1,514 SEK 17.7 - Håkan Ericsson, 14.3 Average time consumers are ready to wait 3.3 for a delivery from a purchase (days) 9.0 President and Group CEO 4.9 6.8 Source: SCB / E-barometern / DIBS of PostNord

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (f) Strong retail sales growth even during the few years of financial downturn. Source: E-barometern, 2017

Photo: Susanne Walström 20 1 Swedish krona, SEK = ¤ 0.104, EUR (average 2017) 1 Swedish krona, SEK = ¤ 0.104, EUR (average 2017) 21 ESTABLISHMENT FACTS SETTING UP OPERATIONS IN SWEDEN IS EASY AND COST EFFICIENT

Way of entering the market Opening hours The most common way to enter the Swedish retail Companies are free to set their own opening hours, market is through direct ownership. Franchising and as long as this is not in conflict with the lease. It is entering via shops-in-shops are other ways, but the common for the retail trade in a given city to reach an Swedish franchise market is not as mature as that in accord on opening hours. Typical opening hours for other European countries. It can be difficult to find high streets are 10:00 a.m. - 7:00 p.m. Mon-Fri, 10:00 financial partners and master franchisees to invest a.m. - 5:00 p.m. Sat, 11:00 a.m. - 4:00 p.m. Sun. For in new international brands. shopping malls opening hours are longer, until 8:00 p.m. /9:00 p.m. weekdays and 5:00 p.m./6:00 p.m. Favourable rental conditions weekends. For grocery stores opening hours are longer. There are no restrictions on foreign companies either buying or renting property in Sweden. It is generally Salary costs believed that the Swedish lease structure is more The average salary for a full-time sales clerk in retail orientated toward tenant than landlord. Security of ranges from 23,000 to 25,000 SEK, excluding social tenancy is strong and the tenant has the right to renew fees. Typically, salary costs for a fashion store amount at lease end. Standard lease terms are 3–5 years for to 17-19 percent of sales. There is no statutory mini- shopping centres and high street units. Longer terms, mum wage in Sweden; wage issues are instead left to usually 7–10 years, apply at retail parks and for anchor employers and employees and their representatives. tenants. Rents are normally constructed as a mini- In the retail sector, the trade union stipulates a mini- mum base rent with a turnover element if sales mum monthly and hourly wage, depending on age exceed the base rent. Rents are indexed annually to and experience, in the collective agreement. the trend in consumer prices, and the tenant has the right to renew the contract for three years. Starting a business in Sweden - fast and easy Setting up a business in Sweden is a straightforward Commercial leases and rents process. Procedures are simple and efficient, based on Compared to other countries, tenants have a strong a transparent system that seeks to facilitate establish- legal position and right to the rented premises. Gener- ment of new enterprises without red tape. 85 percent ally, landlords bear a higher proportion of operating of the population speaks English. costs than in other countries. Rent usually includes heating and water but not electricity or telecommuni- For more detailed information on how to expand to cations. Rent also often includes cleaning of common Sweden – please contact Business Sweden. areas and snow removal. Rental costs for a fashion store typically amount to 8–10 percent of sales.

RETAIL RENTS 2016 SEK thousand per sq m pa

Best Mass Prime Luxury Market Shopping City District Street Centre Retail Parks

Stockholm 15'–20' 10'–25' 7'–11' 1.4'–1.8'

Gothenburg 13'–15' 8'–14' 5'–7' 1.3'–1.6'

Malmö 4.5'–5.5' 4'–5' 4'–6' 1.2'–1.4'

Source: CBRE, 2016 Photo: Henrik Trygg Photo:

22 1 Swedish krona, SEK = ¤ 0.104, EUR (average 2017) 23 BRINGING BUSINESS TO SWEDEN AN A-Z GUIDE

and domestic companies to goods is growing strongly. Flights from Sweden reach PAYMENTS ON TIME TRANSPARENCY defined as price reductions What seems to be the overall experience attract experts and other Eight out of ten shop online, the rest of Europe within two According to Intrum All Western politicians claim of at least ten percent, or among companies that have brought their key people from abroad to with consumer electronics, hours and major Asian mar- Justitia’s European Payment to promote transparency five percent if the margin is work in Sweden. The tax clothes and books topping kets and the US in about 10. Index, Sweden is a country and technology. The less than ten percent. The business into the Swedish market is how relief is motivated by the the list. By truck, all major cities in where companies can expect Scandinavians can do so item must belong to the fact that foreign experts and Denmark, Finland and Nor- to get paid on time for their with more justification than shop’s normal range and easy things are. The business climate is others who live in Sweden JUST ONE WORLD way can be reached in less services. The average pay- most. Performance is meas- should have a regular price. for short periods cannot For most Swedes today, than 12 hours. Estonia, Lat- ment periods in Sweden are ured at all schools and hos- characterised by simplicity, openness and derive full advantage from sustainability is a way of life. via, Lithuania and western 26 days for B2C and 35 days pitals. Sweden is also a lead- YUPPIES AT Sweden’s social welfare and Sweden ranks first in the EU Russia in 24. Sweden ranks for B2B, compared to the er in e-government – you can STUREPLAN transparency. We have compiled a list of pension system. in consumption of organic at the top as the most European average of 36 days pay your taxes with a text Stureplan is more than an foods, leads the way in recy- trade-friendly and logistical- for B2C and 49 days for B2B. message. address, it is also Stock- arguments, in alphabetical order, as to why FINANCIALLY STABLE cling drinks cans and ly efficient nation in the Governments are forced to holm’s symbol for luxury COUNTRY bottles, and gets most of its world, moving goods and QUALITY OF LIFE operate in the harsh light of and style. Business people, Sweden is a thriving market that should be With lowered interest rates energy from renewable connecting manufacturers The Human Development day. Sweden allows every- media icons, models and and rising disposable in­ sources. Sustainable devel- and consumers with interna- Report 2016 from the United one access to all official celebrities stroll past the looked into. comes, the outlook is opment is a key objective for tional markets. Nations ranks Sweden as records. Compared to many square’s famous “mush- positive. In addition, low the Swedish Government, Sweden is also the preferred the world’s 14th best other markets, Sweden has a room” to visit some of the sovereign debt, transparent both at home and abroad. choice when consolidating country to live in. The transparent climate, with city’s most exclusive clubs, economies, an intact bank- The reasoning is that mem- distribution and warehous- report’s human develop- information about restaurants and retailers ing system and consumers bers of one generation ing activities in Northern ment index compares living everything from estate along Birger Jarlsgatan and their employees. Labour rela- with sound personal financ- should conserve resources Europe. conditions in the world’s agents to governmental Bibliotekstan. tions between employers and es produce a rare combina- for future generations. nations and determines institutions easily trade unions are cordial and tion of stability and growth A recent study by the NOT JUST “LAGOM” rankings based on a wide accessible to all. ZEITGEIST constructive. Industrial dis- potential. Sweden has a European Commission The word “lagom” can be range of parameters, includ- AWARENESS putes and conflicts are rare. competitive export industry found that 40 percent of applied to many things – ing life expectancy, educa- URBANISATION Swedes had purchased an sugar in coffee, behaviour, Sweden is recognised for Employers or employers’ focusing on investment and tion enrolment levels, adult Swedes are leaving the both setting new trends and organisations hold discus- on input goods such as com- eco-labelled item over the having a job, the size of your literacy and economic out- countryside at a rapid pace past month, compared with house, drinking. It pretty rapidly adopting them from sions with the unions to ponents and raw materials. put. and gathering in the major abroad. Consumers are con- agree on collective agree- the EU average of 17 per- much means “it’s just cities of Stockholm, Gothen- cent. right”, “everything in sidered demanding buyers ments for employees. GROCERY GIANTS RENTAL burg and Malmö. Stockholm who value new technology, moderation” and “don’t get These regulate wages and The three largest retailers in is the fastest-growing city functionality and quality as employment conditions. too big for your boots” all CONDITIONS Sweden are in the grocery KEY MONEY Compared to other coun- in Western Europe and by much as design. About 90 percent of employ- rolled into one word. Swed- retailer segment. The largest Key money for retail premis- tries, tenants in Sweden 2030, the Stockholm region ees in Sweden are protected ish business people consider of these companies, meas- es is not that common but it have a strong legal position will have about 4 million ANNUAL GROWTH by collective agreements. ured by retail sales value in exists, particularly in prime themselves lagom, meaning inhabitants. The Swedish retail market and right to the rented Employers in the retail indus- 2016, is ICA Sverige, fol- locations. A security deposit normal. However, the has enjoyed positive annual premises. Standard lease try are automatically entered lowed by Axfood and Coop or bank guarantee equiva- Swedish way seems to be growth for more than two terms are 3-5 years for VAT into collective agreements Sverige. Multinationals play lent to between three and six amazingly efficient. Sweden In Sweden, VAT (“moms” in decades, fuelled by steady shopping centres and high when they join the Swedish an important role in Swedish months’ rent is normal. is considered an innovative Swedish) is assessed at a population growth and rising street units. The tenant has Trade Federation. retail, especially in non- and creative country, and standard rate of 25% on disposable incomes. Over- the right to renew the grocery retail, but they are LOW CORPORATE one successful Swedish almost all goods and servic- all, retail sales have contract for a further three DOUBLE TOURISM now gaining in significance company after the other es. Some exceptions apply, increased by 51 percent TAX years. Rents are normally even in grocery retail thanks pops up on the global mar- however, to hotel accommo- since 2000, and according REVENUES BY 2020 Sweden is one of Europe’s constructed as a minimum to the rising share of the ket. dation and groceries (12%) to the Swedish Trade Feder- Tourism is Sweden’s fastest most competitive locations base rent with a turnover discounters Lidl (German) and passenger transporta- ation, retail sales are expect- growing industry, with sig- for corporate taxation. element if the sales exceed nificant revenues expected and Netto (Danish). Sweden’s tax structure is OPENING HOURS the base rent. A high quality tion (6%). ed to grow by 30 percent by Regular opening hours at 2020. to double by 2020. Shopping transparent, efficient and standards prevails at com- tourism is on the rise and HQs CHOOSE designed to meet the needs most shops are 10 a.m. to mercial premises and fee WORLD Sweden is mostly visited by SWEDEN of international investors. At 7 p.m. on weekdays. All structures are generally COMPETITIVENESS BUSINESS FRIENDLY tourists from neighbouring 22 percent, corporate tax is shopping centres and cost-effective. Rents are Sweden is known for its Sweden has the second high- Sweden’s overall perfor- Denmark, Norway and low by international stand- department stores are open linked to changes in the con- non-hierarchical manage- est number of global head- mance in the prestigious Finland, and others nearby, ards, and is also based sole- on Sundays. In the larger sumer price index to keep ment approach based on quarters in the world per World Bank ranking, the such as Germany and the ly on the company’s annual cities, department stores pace with inflation. The mar- consensus, knowledge- million inhabitants. 24 World Competitiveness UK. The strongest growth profit. remain open until 7 p.m. or ket rent includes heating sharing and delegation of Forbes 2000 companies Report, puts Sweden in 6th comes from non-European No licence tax or local longer. Retailers are free to and excludes responsibility to the individ- have their global headquar- place in overall global com- markets like China, Japan, corporate tax is applicable. set their own opening hours, property tax. ual. Business frameworks ters in Sweden. petitiveness, in 6th place in India and USA. Tax frameworks for as long as this does not are transparent and innovation and business businesses compare very conflict with the lease. user-friendly. A high per- INTERNET SAVVY SALARY COSTS sophistication and 4th in favourably with other centage of those employed EXPERTS’ FAST Sweden tops the Networked The median monthly salary technical readiness. OECD nations. speak English, and in many TRACK Readiness Index’s (NRI) for a full-time sales clerk in cases other languages Sweden offers special rankings as the third most retail is 24,300 SEK, X-TRAPRIS besides. income-tax relief to encour- networked economy in the MORE CENTRAL excluding social fees. There Normally spelled “extra- age highly skilled people, world. The country’s show- THAN YOU MIGHT is no statutory minimum pris”, “x-trapris” is some- COLLECTIVE such as international execu- ing is outstanding across the THINK wage in Sweden; the trade times seen in shop windows tives, experts, researchers board: 1st, 2nd, and 3rd for By plane, train, boat, truck or union stipulates a minimum to indicate a temporary sale AGREEMENT and others with special individual usage, business monthly and hourly wage, on selected items. Accord- Sweden has a tradition of car, Sweden lies within a skills, to work in Sweden. readiness, and infra­ depending on age and expe- ing to the Consumer Agen- mutual respect and coopera- comfortable distance of The tax relief scheme makes structure environment, rience, in the collective cy’s guidelines on temporary tion between companies and many European destinations. it easier for foreign-owned respectively. E-commerce in agreement (see above). price activities, these are

24 1 Swedish krona, SEK = ¤ 0.104, EUR (average 2017) 1 Swedish krona, SEK = ¤ 0.104, EUR (average 2017) 25 GOTHENBURG

Retail sales index Daily goods Non-daily goods Total

Gothenburg 102 130 115

Sweden 100 100 100

Source: HUI

GOTHENBURG The Gothenburg region is THE SMILING FACE growing faster than anyone OF SWEDEN could have imagined. Serious investments are also being made in infrastructure and urban development, leading to more commuting and a population influx.

KEY FACTS GOTHENBURG

GRP/Capita*: Companies: 114,000 SEK 460,000 Foreign owned companies: 2,300 Population: Average age: 39 • City: 557,000 (+8,500 per year) Highly educated people: 53% • Region: 1.0 million (+19,000 per year) Single households: 53% • County: 1.7 million (+17,000 per year) Average income: SEK 250,000 Workforce*: 503,000 Retail sales*: SEK 65 billion Students: 50,000 (10% of total Sweden)

* Gothenburg Region Source: Business Region Göteborg For more data on the Gothenburg Region, you may download the report "Facts & Figures" on www.businessregiongoteborg.com

38 39 GOTHENBURG

DID YOU KNOW THAT ... has a retail and F&B sector with ... is a region growing by 32 people GOTHENBURG … a turnover of SEK 71 billion which per day and the added average annual employs more than 38,000 spending per person on retail (excl. F&B) GOTHENBURG people. is approx. SEK 65,000. THE PEARL OF THE WEST COAST

With a thriving business environment and an exciting urban transformation underway, Sweden's second city is attracting people, companies and investors like never before.

Transforming 5,000,000 square metres are slated for development in the central parts of Gothenburg alone, which will double in size with 25,000 new apartments and 45,000 new workplaces. The total investment in the region is estimated # Gothenburg at SEK 1,000 billion. 1 ranks as the most Strong growth sociable city in the world For many years, the Gothenburg region has enjoyed a Source: Hostel World 2017 birth surplus and net population growth. In addition, the Gothenburg region has the fastest growing total wage sum among Swedish metropolitan regions. The strong A tourist and shopping destination growth of the region's labour market is driven mainly by Gothenburg has a lot to offer. There is a wide range to the high value added generated in the region’s production choose from, and plenty of shops are within walking of goods and services. distance, with a mix of department stores, shopping centres, designer shops and pleasant pedestrianised areas. The region also has extensive experience hosting and organizing large and small meetings/congresses, events and festivals, putting it in a strong position in this area relative to the POPULATION GROWTH rest of Sweden. This adds to the importance of and growth in tourism, and to the number of visitors. The number of airline passengers continues to rise, 2000 844,000 breaking a new record in 2016, when 6.4 million passengers travelled to and from Gothenburg. The hotels, holiday villages and hostels also reached new highs in 2016, with 2010 929,000 4.7 million overnight stays.

A delicious experience of Gothenburg 2020 1,046,000 Gothenburg is also a fantastic city for eating out. The offering of restaurants and cafés is well developed. It has everything from Michelin-starred restaurants to tiny street stalls that 2030 1,167,000 serve delicious local specialities. The proximity to the sea and the archipelago means that the selection of fish and seafood is second to none in Sweden. Gothenburg offers several world-class fish and seafood restaurants.

Retail growth Retail sales are an important growth engine for the Gothenburg region, accounting for 27,000 full-time employees. GOTHENBURG AT A GLANCE The city of Gothenburg will celebrate its 400th anniversary in 2021, by which time it will have a substantially expanded • Value added in food & beverage has increased infrastructure base and be an even more attractive travel by more than 60% since 2009 destination. Retail sales play an important role in making this goal a reality. • Sweden's top logistics location and home to Gothenburg is increasingly making waves on the fashion Scandinavia's largest port scene. It’s the birthplace of global brands Nudie Jeans, Monki and Weekday. Meanwhile, major Swedish chains • Sweden's best location for central warehouses MQ, Lindex and KappAhl all have their headquarters in the city.

Vallgatan 12. Photo: Frida Winter/Göteborg & Co 40 1 Swedish krona, SEK = ¤ 0.104, EUR (average 2017) 41 E6 GOTHENBURG 14. Stenungstorg Centre THE LARGEST SHOPPING DESTINATIONS 9. Bäckebol Shopping centre IN AND AROUND GOTHENBURG E45 11. Allum Shopping centre

E20 Frölunda torg Shopping Centre 6. Backaplan

Nordstan shopping centre Photo: Superstudio/Göteborg & Co 1. Shopping Mall J 3. Arkaden Galleria EXAMPLES OF SHOPPING CENTRES, RETAIL PARKS AND DEPARTMENT STORES 2. NK 4. Fredsgatan 1 Nordstan Shopping Centre 5 Frölunda Torg 10 Kållered retail park Gothenburg City The largest shopping centre in Gothenburg, Frölunda Torg offers 200 stores just 15 min. Kållered Köpstad was developed from open is much more than a routine shopping trip. from the city centre. It has everything from countryside into one of the region's retail Aside from the massive selection of clothing, fashion, home décor and sporting goods to parks in the 1970’s. A new land use plan is in shoes and eateries, Nordstan also offers cosmetics and electronics. There are also the works to allow for development of the area. cosmetics, home electronics, sporting goods, several cafés and restaurants, as well as Owner: IKEA Centres toys, interior design items and much more. unique delicacies at the Salutorget food hall. No of tenants: 34 To the airport Owner: Hufvudstaden AB & Vasakronan AB Owner: Skandia Fastigheter AB No of tenants: 178 No of tenants: 217 11 Allum Allum is located 8 km east of Gothenburg 2 Nordiska Kompaniet (NK) 6 Backaplan centre. It is a modern shopping centre 27/40 NK stands for style, trends and inspiration. Backaplan, located just north of Gothenburg's featuring speciality shops side by side with This exclusive department store has been city centre, is one of Sweden’s largest shopping well known chains as well as eateries. E6 located at Östra Hamngatan 42 for over a areas. It covers approx­imately 110,000 sq m Owner: Steen & Ström Sverige AB 155 158 century. Spread over four floors, it has over and holds more than 120 stores. Backapla­n is No of tenants: 100 50 departments offering the latest in fashion, a public transportation hub and is easy to reach accessories, beauty and interior design. The by car. 12 NK Designers department celebrates Swedish Kungsmässan Owner: Multiple owners The retail trade in the growing city of Kungsbacka, brands such as Dagmar, Whyred, Acne, Hunky- No of tenants: 119 dory and Odd Molly. International brands such south of Gothenburg, is characterised by three as Marc Jacobs and D&G can also be found here. separate shopping areas – Hede Fashion Outlet, 7 Galleria 421 Kungsmässan and the inner city. Kungsmässan Owner: Hufvudstaden AB Opened in 2006, it has grown into an estab- is located in the heart of Kungsbacka. No of tenants: 48 lished shopping centre with an increasing Owner: Aranäs KB E20 number of visitors and sales. The largest tenant No of tenants: 86 3 Arkaden Galleria is ICA Maxi, followed by MediaMarkt. Other Arkaden consists of more than 20 shops and tentants include H&M, Intersport, Dress- 13 restaurants on three levels with a focus on man, Lindex, KappAhl and Cubus. Hede Fashion Outlet fashion, design and décor. Here you will find This outlet offers well-known brands in fashion, 5. Frölunda Torg Owner: Eurocommercial Properties N.V sporting goods and home furnishings from Acne, shops like Zara, Raglady, Tara, Vans, MQ, No of tenants: 13 7. Galleria 421 Mango, Tommy Hilfiger and Tesla. The mall Björn Borg, Hugo Boss, Filippa K, J.Lindeberg, opened way back in 1899. Kosta Boda, Lacoste, Nudie Jeans, Orrefors, 8 Sisjö retail park Oscar Jacobson, Peak Performance and Owner: Vasakronan AB Sisjö Entré is a part of Sisjö Köpstad Rörstrand. No of tenants: 21 8. Sisjö Retail Park – a customer-friendly and comprehensive Owner: Svenska Handelsfastigheter shopping complex for both consumable and No of tenants: 50 4 Fredsgatan durable goods. Located in Askim in the south This area around the main shopping street of Gothenburg, it is one of the most largest named Fredsgatan is also called "Fredstan". shopping areas in the region, which is rapidly 14 Stenungstorg Centre Fredsgatan is a classic shopping street in growing and attracting more stores to the This center in the municipality of Stenungsund downtown Gothenburg and stores have area. There is a mixture of stores offering consists of many stores with a large variety recently been rebuilt with new entrances. electronics, DIY and home improvement, of brands. The location is in a quiet marine environment just by the ocean. J Commuter trains Also, new retail space has been created sporting goods, toys, etc. making room for new fashion, and food and Owner: : Alaska Holding Sverige Owner: Citycon beverage concepts. No of tenants: 67 No of tenants: 75 Shopping centre 10. Kållered Retail Park Owner: Vasakronan AB & Hufvudstaden AB No of tenants: 9 9 Bäckebol Retail Park Located on the island of in the northern part of town, this large shopping destination is home to retailers such as Ikea, Airport Bauhaus, Clas Ohlson, Coop, MediaMarkt and sports chain XXL. Owner: Trophi Fastighets AB (Redito AB) 12. Kungsmässan No of tenants: 28

13. Hede Fashion Outlet

42 1 Swedish krona, SEK = ¤ 0.104, EUR (average 2017) 43 Åhléns City Esprit GOTHENBURG S Kornhusgatan Kronhusbodarna Casino Cosmopol Nordstan Stampgatan Smedjegatan Desigual PostgatanGustav Adolfs Torg Victoria's Secret Gothenburg has

Tyggårdsgatan Slussgatan Drottningtorget an exciting mix of Sankt Eriksgatan Packhusplatsen Palace international fashion KEY RETAIL Köpmansgatan S Östra Hamngatan brands, independent Michael Kors shops, pedestrian Zara Brunnsparken AREAS AND Norra Hamngatan Mango Benetton streets, malls and Arkaden Lindex Tommy Hilfiger department stores. Golden Days Tesla FredsgatanGina Tricot

DISTRICTS Stadium 1 Naturkompaniet Avenyn - the city's boulevard GOTHENBURG Fiskekrogen Södra Hamngatan NK Kungsportsavenyn, known as Avenyn (the Lilla Torget Wasséns Panduro Avenue), stretches from the monumental

Levi's Super Dry Götaplatsen to Kungsportsbron bridge by the Korsgatan Cervera CITY CENTRE Best of Basic Best of Brands Trädgårds- Zarah Home Taco Bar Moat. Avenyn is a popular destination for over Condeco Vans Volt Stora Nygatan Föreningen 8 million Gothenburg natives and tourists Elite Plaza Drottninggatan Jedviks Josephssons The DublinerSephora KFC every year. The boulevard and its side streets Lindex Västra Hamngatan Zara are lined with numerous cosy cafés, renowned Twilift Massimo Ekelundsgatan Dutti Jarl Sandin Flash Jeweler Kappahl Efva Attling Jerns restaurants and popular bars. In summer, Timberland

H&M Avenyn becomes even livelier as the pavements

Kyrkogatan MQ Magnus&Magnus COS Ritz fill up with sunny terrace bars, cafés and Stadium Östra Larmgatan strolling holidaymakers. The district also has Woolrich Vagabond several museum shops, including the one at S Napapirji

Skeppsbron Magasinsgatan New House Marc O'Polo Dorsia 2 Hemtex the with its large Stora Badhusgatan Pour Bon THE KungsgatanSpecsavers Twist & Marlboro Classics Åhléns Village Tátch Tátch Gina Tricot Tango selection of art and design books, and Röhss- Macforum S INNER CITY Designtorget Ströms Avalon ka, which offers an assortment of curated o Pyret Polarn Kungsportsbron Kungsportstorget J.Lindeberg design items and prints. Flagship stores for

Body Shop Oscar Jacobson, Villeroy & Boch, Tommy Pizza Hut Milk & Honey Vallgatan Tiger Tranquilo Nudie Jeans Hilfiger, Bang & Olufsen, Nespresso and Laura Saluhallen food hall Ashley rub shoulders with a wide selection of Surbrunnsgatan Espresso House Johanssons skor b'chic Bältesspännarparken top fashion chain stores. Recently the store Av33

Flash Whydred opened here where one can find an assortment Kungsgatan Pop boutiqueKungsängen Da Matteo Acne of sports brands such as Under Armour. Sally Houdini Jones Velour Södra Larmgatan Norrgavel Filippa K 2 Strömmingsluckan AB Furetti The inner city The charming area inside the Moat is home to Hvitfeldtsgatan

Kungshöjdsgatan Basargatan Artilleriet Interiors a mix of small specialist shops and large chain S stores. There are about 470 stores, more than J Commuter trains Södra Vägen 125 restaurants and 57 cafés, and over 10 S Tram retreats for body and mind. The aroma of freshly Restaurant roasted coffee drifts from Victoriapassagen, a narrow alley lined with charming small bou- Hotel tiques. Beyond, the cobbled Södra Larmgatan Culture Nya Allén stretches all the way to Parkgatan Hard Rock Café and the old Market Hall (Saluhallen). A little Barabicu Brasserie Lip Kometen farther along the Moat stands the famous

Le Pain Feskekôrka fish market hall. Kungsgatan, which Francais 1 is mostly a pedestrian street, offers a wide Feskekörka Arsenalgatan StorgatanTeatergatan Hvitfeldstsplatsen AVENYN variety of shops, cafés and restaurants. Burger Lorensbergsg. King Recently, Tesla motors opened a showroom Chalmersgatan here in the inner city. Luxury brand Michael Kors Kungsparken Västra Hamngatan Kungsportsavenyn also has a store close to the Tesla showroom. Järntorget Rizzo Ecco The Magasin district, previously a ware-

Götabergsgatan S house district, now offers a great selection of shopping and exciting places to eat. A creative S Peacock Dinner Club centre has blossomed in the neighbourhood SMAKA Oscar around Magasinsgatan, Vallgatan and Södra

Rosenlundsbron Vasagatan Norra Allégatan Jacobsson Larmgatan, where local Gothenburg designers 4 LINNÉ Parkgatan Aschbergsgatan Lindex have set up shop amidst cafés and vintage Södra Allégatan S boutiques. Shoppers will also find speciality TvåkantenVileroy Boch shops such as Emma and Malena and Velour, Villervalla Linnégatan No.2 Vigårda S and can enjoy a seafood lunch at Strömmings- luckan in the heart of this district. Elite Park Avenue Lindex Tacos & Tequila Made in China Haga Östergata S Cabaret Lorensberg 3 Taverna Averna Haga 3 HAGA Haga Nygata Haga is one of the oldest and most popular Av 33 Koka Nespresso districts in Gothenburg. The neighbourhood Hereford Kristinelundsgatan Tommy Hilfiger Beefstouw has kept a lot of its original charm and the Sjöbaren Synoptik Vasaparken picturesque main street Haga Nygata is lined Haga Nygata

Liten Karin Liten with well-preserved wooden houses, boutiques

Exter Smycken Exter Twist & Tango & Twist Marimekko S and cafés. It is home to numerous small Linnégatan

Restaurang 28+ boutiques that offer an eclectic mix of old and new. There is a wonderful assortment of Vasaparken Mellangatan antiques, handicrafts, designer goods, books, children’s clothing and vintage fashion. The Vasagatan Engelbrektsgatan Kaponjärgatan neighbourhood merges into the Linné district. 7Eleven

Östra Skansgatan Skolgatan Husargatan 4 Linné Pilgatan The Linné district extends from Järntorget The popularity of Gothenburg— square to the hub Linnéplatsen, next to Sprängkullsgatan S S , a park. The street is sometimes Landsvägsgatan birthplace of ­Volvo (and Alicia Vikander), described as “the main boulevard” for the locals, largely thanks to its large selection of Lilla Bergsgatan home to ­Michelin-star restaurants, restaurants and bars. The area is also good for Viktorshopping, Rydbergs Gata with a varied selection of vintage, Västergatan picturesque ­architecture, sophisticated fashion boutiques and art galleries. The four Skanstorget side streets named Långgatan are dotted with bar culture, renowned galleries and art urban fashion stores, vintage boutiques, record shops, antique shops, pubs and restaurants.

Linnéterassen museums, and designer shops—has exploded in the last few years. – Matilde Wergeland, Vogue 2017 44 45 GOTHENBURG

RETAIL DEVELOPMENT IN THE GOTHENBURG REGION

Gothenburg is in the early stages of its biggest development leap in modern history and 80,000 new homes and as many workplaces will be built by 2035. Gothenburg’s county, Västra Götaland, also has the largest planned volume of new retail space – 700,000 square metres.

Nordstan Shopping Mall services and eateries. 300 apartments will be built Ongoing development next to this area. SKF’s old factory buildings are being This enormous shopping centre, which attracts millions transformed into the new shopping experience Kulan, of shoppers every year, is set to grow even larger. whose architecture and design are inspired by the Renovation and expansion have already started, and industrial heritage of the area. The Avenue - Avenyn - main boulevard of Gothenburg will provide new streets and arcades, more entrances and more retail space for stores and eateries. Högsbo-Sisjön Ongoing 2016-2019 Fredstan This area south of Gothenburg continues to expand, Ongoing expansion and development and is expected to double in area over the next years. In 2016 several new stores opened along the southern The investments will lend the area a new character, part of Fredsgatan. After extensive renovations the street with housing, offices, new retail space and hotels. is undergoing continuous development and will offer Gothenburg Airport City premium concepts to the Gothenburg market as well Nya Hovås Retail Ongoing development as new eateries. Ongoing 2016-2019 This huge airport area in the municipality of Härryda million sq m is being This first class retail area in the prosperous residential will be a sustainable destination for work, services, developed in central Backaplan retail district area in southern Gothenburg, about 15-20 minutes meetings, shopping and travel. There are detailed Gothenburg alone, and the Ongoing 2016-2025 drive from Gothenburg city centre, is on its way to plans for large areas dedicated to logistics, business total investment volume for This large and popular retail district has a central grow bigger during the coming years. There are major parks and retail. 5 the entire region is estimated at location, just a bridge and a few minutes away from plans for more retail space with a total of 50 well-sorted Gothenburg's inner city. It will transform into a new stores and more housing. Kongahälla Shopping SEK 1,000 billion. The largest sums urban district – an attractive area for living and shopping. Expected opening 2019 will be invested in new housing, Developers have joined forces, and plans include Kållered retail park A new retail destination will be established in this infrastructure, industry/production 5,000-6,000 housing units, public spaces and retail/ Expected opening 2021 municipality of Kungälv – just along the E6 freeway. and retail. food & beverage space. This is a large area of retail expansion in the municipality The planned name of this urban district is Kongahälla of Mölndal, which will give the new modern shopping – it will consist of retail as well as non-commercial Kulan Retail District destination a combined total area of nearly 80,000 sq m. activities covering about 35,000 sq m. It will also Expected Opening 2021 include new residential units. All of which will be This shopping centre in Gothenburg is under development adjacent to the new travel centre also planned for in with 55,000 sq m of new retail space including stores, this area.

Mölndal Galleria Kongahälla Shopping/Adapta Fastigheter Expected opening 2018 This galleria is a redevelopment project of parts of the existing city centre of Mölndal. It will feature 70 stores spread over 24,000 sq m of retail services and food and beverage. Around 150 apartments will be located on top of the two-storey galleria.

The Avenue - Avenyn - main boulevard of Gothenburg Ongoing expansion and development Avenyn and its side streets are being developed to make room for even more shops, experiences and restaurants of international calibre. This transformation aims to give Photo: Tomorrow visitors an exceptional range of choice within fashion, food and exciting art and culture concepts.

Allum Ongoing expansion This mall is located in Partille, 7 km east of Gothenburg. Allum is set to expand by 15,400 sq m taking the total number of stores to more than 130. The expected opening of the new extended mall is during 2019.

46 47 LET US ASSIST YOU IN SETTING UP BUSINESS IN SWEDEN This publication is provided by the investment promotion organisations of Sweden, Stockholm, Malmö and Gothenburg in partnership with industry organisations and retail property owners. Contact us for assistance, information and network contacts when considering expanding into Sweden.

business sweden assists international INDUSTRY ORGANISATIONS CONSULTANTS companies to invest and expand in Sweden and companies in Sweden to stockholm property association cbre is the largest full-service real estate grow their international revenue Based in the heart of Sweden’s thriving services firm in the world. Operating through strategic advice and hands-on capital, the Stockholm Property Associ- across the globe, the firm holds a leader- support. The Swedish Government and ation represents and serves over 5,000 ship position in the clear majority of local industry own Business Sweden, members in the commercial and the world's key business centres. thus providing access to contacts and residential real estate industry. The firm has approximately 70,000 networks at all levels. www.fastighetsagarna.se/stockholm employees, of whom 250 are based in www.business-sweden.se Sweden. CBRE have offices in Stockholm, Gothenburg and Malmö. invest stockholm is the official invest- PROPERTY OWNERS www.cbre.se ment promotion agency of Stockholm. We work on a long-term basis with the amf fastigheter is one of Sweden's larg- cushman & wakefield is a leading global marketing and development of the Stock- est property companies. By developing real estate services firm that helps clients holm region as a business destination. and managing our offices, retail proper- transform the way people work, shop and www.investstockholm.com ties and the surrounding neighbour- live. Our cross-border retail team pro- hoods, we are contributing to the crea- vides innovative solutions to occupiers, stockholm city centre partnership tion of vibrant and attractive cities. AMF owners and investors, with offices in (City i Samverkan) is a non-profit mem- Fastigheter is a subsidiary of the pen- Stockholm, Norrköping, Gothenburg and bership organisation that initiates, man- sion company AMF. Malmö. We are the centre of retail and age and executes city centre projects in www.amffastigheter.se leisure. collaboration with local authorities, prop- www.cushmanwakefield.se erty owners and various city stakehold- axfast is a long-term property company ers. Together we strive for the best possi- with focus on sustainability and selected gate46 provides solutions to make ble Stockholm City centre experience. locations, specialized in owning and devel- retailers more profitable. We offer www.cityisamverkan.se oping properties for retail, offices and Tenant Representation, Site Acquisition hotels in Central Stockholm and logistics & Disposal, Legal Advice, Valuation & business region göteborg is the official in Sweden. Axfast is one of four separate Advisory and Contract Management. investment promotion agency of the groups within the Axel Johnson Group. www.gate46.se Gothenburg region. We are dedicated to www.axfast.se.se strengthening and developing trade and wistrand advoktabyrå has one of the industry in this region. We offer local vasakronan is the leading commercial most prominent real estate practices on expertise, market information, tailorma- property company in Sweden. Our strat- the Swedish market. Within the retail de data/analysis and contacts facilitat- egy is to focus on retail premises and property industry, the practice regularly ing the establishment and expansion of centrally located offices in Sweden’s advises on sophisticated domestic and businesses in greater Gothenburg. major growth regions: Stockholm, cross-border matters, ranging from www.investingothenburg.com Uppsala, Gothenburg, Malmö and Lund. transactional work to advice on all We believe in city shopping wholeheart- types of property related issues as well invest in skåne is the official business edly, and with 314,000 sq m of retail as issues regarding ownership, use and promotion agency for southern Sweden. space, we are one of the largest retail management of commercial properties. We provide free professional advice operators in Sweden with an attractive Contact: and services to international compa- offer of prime city retail premises. Jan Alexanderson, Partner nies considering southern Sweden for www.vasakronan.se +46 708 64 09 13 | [email protected] future investments, and assist regional Robert Kullgren, Partner companies in developing their interna- +46 709 50 72 77 | [email protected] tional business. www.wistrand.se www.investinskane.com Photo: Tove Freiij Tove Photo:

1 Swedish krona, SEK = ¤ 0.104, EUR (average 2017) 59